Keep an eye on Roblox Corp. (RBLX).
One, after gapping lower on disappointing monthly user growth and booking metrics, the stock appears to have bottomed out. Not only did RBLX catch double bottom support, it’s starting to pivot from oversold reads on RSI, MACD, and Williams’ %R.
Two, RBLX is the closest thing to a mainstream social metaverse, with a mission of building a human co-experience platform that enables billions of users to come together to play, learn, communicate, explore and expand their friendships, according to the company.
Three, analysts at Needham just assigned a positive rating, with a price target of $136. Even better, earnings continue to be impressive.
In its third quarter, the company reported that revenue increased 102% over Q3 2020 to $509.3 million, bookings increased 28% over Q3 2020 to $637.8 million, average Daily Active Users (DAUs) were 47.3 million, an increase of 31% year over year.
“Engagement is our north star. We’re very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox,” said David Baszucki, CEO of Roblox. “We are happy to report that the developer community earned over $130 million in the quarter and is on pace to earn well over $500 million this year. As we finish 2021 and head into 2022, we will continue to invest in innovative technology to enable our developer community to do what they do best – build and create.”
We’d use weakness as opportunity with beaten down shares of RBLX.