Why Roblox Stock Was Down Today
Shares of Roblox (NYSE: RBLX) were down on Monday after an analyst said he believes the stock will underperform the market from here. As of noon ET, Roblox stock was only down 2%, but it had been down 6% earlier in the session.
According to The Fly, MoffettNathanson analyst Clay Griffin believes Roblox stock will do worse than the market going forward. This was the first time the analyst had commented on Roblox. And in saying it would underperform the market, Griffin gave Roblox stock a price target of $19 per share, suggesting roughly 50% downside from where it traded at the close of the market on Friday.
Griffin's bearish stance on Roblox stock seemingly stems from its lofty valuation. Looking at its price-to-sales (P/S) ratio, Roblox has come down from a sky-high P/S of 44 in 2021 to where it trades today at around nine. However, a P/S of nine is still expensive in absolute terms, especially for a company with a slowing revenue-growth rate.
Source Fool.com
