The Ratings Game: Roblox stock rockets 20% on ‘impressive’ turnaround from yearlong slide

by | Oct 17, 2022 | Stock Market

Roblox Corp. shares turned in their best performance in nearly a year Monday, after the youth-oriented social-media platform reported figures for September that suggested a turnaround from a yearlong slog. Roblox
RBLX,
+19.83%
reported September bookings and daily active user figures Monday that suggested a better-than-expected trajectory for the quarter, and shares took off.

By early afternoon, the stock’s price had climbed nearly 23% to an intraday high of $43.66, and closed up 19.8% at $42.61. It was the stock’s best one-day performance since Nov. 9, 2021, when it soared 42% after the company turned in October growth despite a Halloween weekend outage. Not counting Roblox shares closing more than 50% above their direct listing price of $45 on their first day of trade, March 10, 2021, Monday’s performance was the stock’s third best on record. Other comparable high-performing days for Roblox shares are May 12, 2022, when shares finished up 19.2%, and May 11, 2021, when shares closed up 21.3%, according to FactSet data. Early Monday, Roblox estimated bookings of $212 million to $219 million for September, even as a stronger dollar
DXY,
-1.08%
against the euro
USDEUR,
+0.03%
and the British pound
USDGBP,
0.01
adds an estimated 600-basis-point headwind to the year-over-year bookings growth rate. Cowen analyst Doug Creutz said in a Monday note that the September performance topped his earlier estimate of $210 million, putting Roblox on track to top the consensus for the quarter despite negative seasonal trends from the target audience of tweens returning to school in the month. “At the July, August, and September midpoints, bookings for the quarter would be $695.5 million, just a touch below our $698 million …

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