Why Roblox Stock Plummeted by Over 6% Today
Many tech stocks remained under siege on Monday in the face of rising interest rates that many believe will inch higher with a fresh new Federal Reserve hike in two days' time. One victim of this sentiment at the start of the week was online game company Roblox (NYSE: RBLX), which took a hit when an analyst identified the stock as one to avoid. Consequently, Roblox's shares closed Monday more than 6% lower.
The analyst providing the opinion was Bernstein's Toni Sacconaghi, who is cautiously bullish on the near future of tech stocks. In a new research note published that morning, Sacconaghi stated that some titles in the sector are undervalued at current prices.
"Tech's five-year growth expectations relative to the market ex tech are below historical averages ... which we view as a positive," he reasoned.
Source Fool.com
