Is Roblox Stock a Buy?
Roblox (NYSE: RBLX) has been a volatile stock since its direct listing in March. The gaming company's stock started trading at $64.50 per share, far above its reference price of $45, and briefly topped $100 in June.
After that roller-coaster start, Roblox now trades in the low $80s, but it remains a divisive stock. The bulls will praise Roblox's popularity with tween users, its overseas expansion plans, and its lack of meaningful competitors. On the other hand, the bears will note that the company's losses are widening, the stock's valuations are frothy, and Roblox faces tough post-pandemic comparisons over the next few quarters.
The recent second-quarter report on Aug. 16 featured softer-than-expected billings growth with a wider-than-expected net loss. This miss caused Roblox shares to briefly dip to the mid $70s -- but the stock quickly rebounded and erased all its post-earnings losses. So let's see if this battleground stock is worth buying today.
Source Fool.com
