Hey Gotraders,
Online gaming platform, Roblox (RBLX) went public in March. They just released their first official quarterly results as a public company. Letâs take a look at their results, shall we?
Earnings per share:Â $0.46 loss vs. $0.21 loss expected
Revenue:Â $387 million (up 140% year-on-year)
Bookings: $652.3 million (up 161% year-on-year)
Daily active users: 42.1 million (up 79% year-on-year)
How is Roblox different from other gaming companies? Roblox relies on its community of users/creators to build video games for them using Robloxâs own custom design elements. This means that Roblox has less capital expenditure and associated risks. Users who build content for the platform make money by selling their creations to other players. Players buy in-game items, character outfits, etc. using Robux, a digital currency. 1 Robux = $0.0035. Meanwhile, developers collect a 70% cut of the Robux that players spend.
Why is this important? Roblox grew in popularity during the pandemic. So far, Roblox has shown promising figures for April. Revenue is up around 138% compared to last year, and the number of daily active users are up 37% year-on-year. It seems like several countries are experiencing a surge in virus cases and are going back into lockdowns again. The question here is - how will Robloxâs numbers be affected once restrictions are eased and less people are stuck indoors⊠Hmmm..
Roblox stock is up around 2.8% in extended trading.
đ Cathie Woodâs ARK Innovation ETF is down 35% from its recent high đ»
Cathie Woodâs Ark Innovation ETF (ARKK) fell over 5% yesterday, reaching an all-time low this year. The ETF is down nearly 35% from its most recent high of $159.70 on 16th Feb. This brings the ETF down more than 13% this month and more than 16% year to date. Ouch!
The ETF closed at $103.98 yesterday, down 5.23%.
đ Virgin Galactic stock freefalls and is down over 17% âŹ
Stocks of Virgin Galactic (SPCE) seem to be in free-fall during extended trading as the company reported first-quarter losses of 55 cents per share. Analysts were expecting a loss of 27 cents. The bad news continues though. They did not have a target date set for its next spaceflight test, which was initially planned for this month.
Stocks are down over 17% in extended trading at the time of writing.
Top movers & shakers đąÂ
What else is making headline news đ°
More than 40 attorneys general ask Facebook (FB) to abandon plans to build Instagram for kids.
Cloud stocks plunge to a six-month low as investors hasten rotation out of recent top performers.
Eli Lilly (LLY) signs deals to boost the supply of COVID-19 treatment in India.
Popular companies releasing earnings this week đ°
Tuesday: Toyota (TM), Electronic Arts (EA), Palantir (PLTR), QuantumScape (QS), Opendoor (OPEN), Lemonade (LMND)
Wednesday: Coupang (CPNG), Wix.com (WIX), Bumble (BMBL), Playboy (PLBY), ThredUp (TDUP)
Thursday: Alibaba (BABA), Disney (DIS), Airbnb (ABNB), Coinbase (COIN), DoorDash (DASH), XPeng (XPEV), Aurora Cannabis (ACB)
A companyâs 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 companyâs stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
Thatâs all from us for now.Â
Signing out,
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