Roblox Stock Volatile After Mixed Q3 Earnings Report
Roblox shares swung wildly in pre-market trading following a mixed third-quarter earnings report. The gaming platform initially surged 8% before reversing to a 6% decline, reflecting investor uncertainty.
Revenue grew 48% year-over-year to $1.36 billion but missed analyst expectations of $1.69 billion. The company posted a narrower-than-expected loss of $0.37 per share versus the anticipated $0.49 loss.
Key metrics showed strength with bookings jumping 70% to $1.92 billion, surpassing estimates. Daily active users crossed 150 million for the first time, reaching 151.5 million - a 70% increase from last year.
Analysts remain divided on Roblox's prospects, maintaining a Moderate Buy rating with a $152.36 average price target. The company's revenue recognition model, which spreads income over 27 months, continues to make bookings the preferred performance metric.
