Why Roblox Stock Was Up This Afternoon
Shares of Roblox (NYSE: RBLX) were up 7.4% as of 2:02 p.m. ET on Friday following management's comments at the Roblox Developers Conference. Management announced several new features and tools for developers to create content, in addition to giving users new ways to express themselves on the platform.
But what moved the stock appears to be the announcement of immersive ads coming to the platform in 2023. Worries over Roblox's decelerating growth in revenue and bookings has weighed on a stock that has shed more than half its value year to date.
Figuring out new ways to monetize its 58 million users with advertising has been a top priority for management, and those innovations appear to be arriving soon. Roblox's user base has more than doubled over the last three years, but average spending per user on virtual currency (Robux) continues to trend down. In the second quarter, average bookings per user fell 21% year over year.
Source Fool.com
