- Roblox launched a video call feature for its gaming platform.
- The current trading price of the Roblox share is $27.74 and the price has declined by 4.38% in the last trading session.
Roblox Corporation was founded in the year 2004 in America. The company makes video games and helps users and gamers to connect with each other. Roblox mainly operates in the Technology services sector. The CEO of the company is David B. Baszucki who is a Canadian-born American entrepreneur. The company has its headquarters in San Mateo.
The current market cap of the company is $17.109B and has a negative earnings-per-share ratio of -$1.88 which generally indicates that the company is making a loss on each share. The current beta of the company is 1.85 resulting which the stock moving more than the market as a whole and the stock is considered volatile and may give uncertain move sometimes.
The RBLX stock trades with an average volume of 10.45M shares and has 566.684M shares floating in the market. During the six months ending June 30, 2023, the company showed no significant changes to the quantitative and qualitative disclosures about foreign currency exchange risk or inflation risk.
Roblox Corporation Performance Analysis
In the year 2022, the company made an overall revenue of $2.23B out of which the gross profit was 16%. The net income for the company has further declined as compared to the previous year resulting in negative figures of -$924.37M and the current profit margin of the company is -41.54% which is concerning over a long period of time for the company.
Risk Factors
The company has multiple risk factors that make investment in the stock risky.
- The company has a history of net losses and may not be able to achieve or maintain profitability in the future.
- The financial condition and results of the operation can fluctuate from time to time as the business is affected by seasonal demands.
- The loss of one or more of the senior members of the senior management team or the key personnel can significantly harm the business.
RBLX Share Technical Analysis
The price of the Roblox share is trading inside a contracting zone making equal lows and lower highs, this structure of the market leads to uncertainty and is known as the triangle pattern. The price unless breaks below or above this pattern, will remain uncertain.
As the stock was listed in the year 2021, on the weekly timeframe the 200-day EMA is not yet formed on the charts but as the stock has been declining, it is trading below the 50-day EMA. This represents a weakness in the share price.
The RSI for the RBLX stock has been unable to hit the overbought zones. And has declined below the 50-level breaking below the 14-day SMA line, the current value of the RSI is 36.40. This represents a bearish signal for the stock.
Technical Overview of RBLX Stock
A technical overview of multiple indicators shows that the market is bearish based upon various moving averages. And oscillators but the analysts and experts are giving a bullish rating for the share based on the fundamentals and financials of the share.
Conclusion
The price of the share has been declining from the higher levels for a very long time. And is currently consolidating inside a triangle pattern following negative EMA and RSI. The company’s fundamentals also do not support the upmove in the stock.
Therefore, the probability of the stock breaking down below the triangle pattern is high. Which might lead to prices to further lower levels.
Technical Levels
- Support levels – $15.00 and $25.00
- Resistance levels- $51.00 and $73.00
Disclaimer
The information provided in this article, including the views. And opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.