Hey Gotraders,
Roblox (RBLX) is a company that went public a couple of weeks ago. Let’s take a deep dive and learn more about them.
Roblox is an online gaming platform that allows users to imagine, create, and share experiences with each other in immersive, user-generated 3D worlds. Players can build anything they want, and become anything they want. Roblox is especially popular with the younger generations. The games on Roblox are created by the users of Roblox. Really!
During the pandemic, Roblox gave users a chance to escape the monotony of their lives and travel to an imaginary world of their choice. If someone wanted to become a race car driver, they could. If someone wanted to become a supermodel, they could. If someone wanted to become a superhero, they could!
Why is this important? The number of active Roblox users grew by 85% during the pandemic. There are now over 32.6 million active users on Roblox. The number of paying users has also more than doubled to about 490,000. Roblox recorded sales of $923.9 million last year, up 82% from 2019. Once lockdown restrictions are lifted, people will spend less time at home and in their virtual spaces. It remains to be seen how much momentum they can maintain once the economy fully reopens.
P.S. Roblox is now available on Gotrade!
📉 Analysts are unsure about ViacomCBS 🤷
ViacomCBS (VIAC) launched its Paramount+ streaming service earlier this month. Analysts expressed concern about their ability to compete against streaming giants like Netflix (NFLX) and Disney+ by Disney (DIS). Analysts from Bank of America (BAC) said that ViacomCBS’s move to streaming was the “right strategy” for the media company, “but it would be hard for them to execute.” Stocks are down over 30% in the last couple of days and currently trade at $70.10.
📉 GameStop is down over 30%🔻
Stocks of GameStop (GME) fell following their earnings report. They missed Wall Street’s expectations on both top-line and bottom-line figures. GameStop went on to announce former Amazon (AMZN) and Google (GOOG) executive Jenna Owens as its new Chief Operating Officer. They also mentioned that they saw a 175% jump in their e-commerce sales, compared to last quarter. They declined to answer any questions. Yikes.
Stocks of GameStop fell 33.79% and currently trade at $120.34.
Top movers & shakers 🎢
What else is making headline news
Why Facebook (FB) and Apple (AAPL) are fighting over your privacy.
Tech and GameStop (GME) losses have traders wondering if retail investors are losing interest in the market.
Investors in Airbnb (ABNB), TikTok, and Snap (SNAP) join forces to fight anti-Asian hate.
Upcoming earnings for this week
Thursday: Darden Restaurants (DRI), Arko (ARKO), Apartment Investment (AIV)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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