Michael Coppola’s Post

Roblox reported its earnings and 2024 outlook this morning; stock is down -20%😬. The now $20B market capitalization company has grown revenue but not posted postive earnings yet. 📉It's not so much that #Roblox's #gamers are aging out of its target market as it is that growth has slowed as operational costs remain high and other #egames, #meta-worlds, and #AI #technologies challenge it. 🕹Daily active user (DAU) spending on the #game is not growing like it once did; 20% year-over-year expansion is tough to maintain. #business #outlook #investing “Running Point delivers custom investment solutions, family office services, innovations, and unique perspectives to you and your family—we are your family office—you can emphasize your enjoyments, priorities, and legacy.” ~~ Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-24-74

Upgrading Roblox To A Buy - A Lot Of Moving Parts In Its Favor We think there are green shoots for bookings growth in international markets and more room for higher average bookings per DAU into FY25. The company comfortably beat consensus on bookings last quarter, reporting $955.2M versus consensus at $901.76M, and is guiding for bookings of $1,000M to $1,025M, again outpacing the consensus at $973M. We don't think the positive of the revised bookings guidance has been priced into the stock yet. Bookings are the critical metric to watch for RBLX, and it's closely tied to their DAU metric, which grew 21% Y/Y last quarter to 79.5M and average monthly unique payers up 22% Y/Y to 16.5M. RBLX's DAUs have expanded at an impressive rate since 1Q20, shown in the chart below; we expect DAUs to comfortably and sustainably surpass 80M in 2HFY24. The company also beat guidance in spite of reporting flat growth in its average bookings per DAU for the quarter, at around $12.01, due to a headwind in user geography. We see room for average bookings per DAU to grow, supported by new monetization opportunities. Visit us on Seeking Alpha for the full sentiment: https://lnkd.in/eDJT-yaX

Roblox has long been a dominant player in online gaming, but it’s now facing serious headwinds. The company has been accused of inflating key metrics, with allegations suggesting daily active users are overstated by 25-42%, and engagement hours inflated by over 100%. Simultaneously, child safety issues are emerging, with disturbing content reportedly slipping through the cracks. With $1.07 billion in losses over the last year, the question is: how long can Roblox sustain this growth-first strategy? Their recent partnerships, such as with WPP, signal a push towards growing their programmatic advertising business, potentially unlocking new revenue streams. But while these partnerships could be lucrative, they will mean little if user trust continues to erode due to safety concerns and transparency issues. The company needs to balance addressing these challenges with its continued expansion into the metaverse and advertising, or it risks losing investors and users alike. The future could go in two directions: if Roblox invests in stronger safety measures and becomes more transparent, it could evolve into one of the most trusted digital platforms for younger audiences. But if it continues to struggle with these core issues, the platform could face stricter regulations, legal actions, or a decline in user trust. What do you think? Can Roblox course-correct and thrive, or is it heading toward more significant challenges? https://lnkd.in/gHbBU8jH #Roblox #Metaverse #ChildSafety #DigitalAdvertising #mobilegames

🚨 Roblox: Record Growth Amid Controversy—But At What Cost? 🚨 Roblox just posted standout Q3 results, with: 📈 17.2% spike in share price 💰 $1.13 billion in bookings (+34% YoY) 👥 88.9 million daily active users (+27% YoY) ⏳ 20.7 billion hours of engagement (+29% YoY) The company even raised its 2024 bookings forecast to $4.37 billion. But alongside these gains, serious allegations have surfaced, dubbing Roblox a “pedophile hellscape” due to disturbing incidents of inappropriate content and predatory behavior on the platform. This raises the question: Is Roblox’s growth masking urgent safety issues? As investors weigh financial gains against ethical responsibilities, how should Roblox prioritize user safety to maintain trust? What’s your take—financial win or warning sign? Share your thoughts below 👇 #Roblox #GamingIndustry #UserSafety #InvestorInsights Immerzo

Roblox has had a killer year. Here are some key highlights: 🎉 CEO David Baszucki commented, "We finished 2023 with another strong quarter of growth as we continue to drive innovation and new experiences across the Roblox platform." 💡 CFO Michael Guthrie added, "We ended the year with our strongest rate of quarterly bookings growth in two years and delivered our first quarter of $1 billion in bookings." 💰 Q4 2023: - Revenue: $749.9 million (up 30% YoY) - Bookings: $1,126.8 million (up 25% YoY) - Net loss attributable to common stockholders: $323.7 million - Net cash provided by operating activities: $143.3 million (up 20% YoY) - Average Daily Active Users (DAUs): 71.5 million (up 22% YoY) 💼 Full Year 2023: - Revenue: $2,799.3 million (up 26% YoY) - Bookings: $3,520.8 million (up 23% YoY) - Net loss attributable to common stockholders: $1,151.9 million - Net cash provided by operating activities: $458.2 million (up 24% YoY) → Roblox is adding VR, console compatibility, 17+ game features and more. → I’ve said it before and I’ll say it again, I think Roblox will be the next Facebook. → It’s the reason I’m so heavily focussed on Roblox. → Today it’s percieved as ‘just a kids game’. → In 5 years it will be a platform most young kids AND adults will associate with social immersive digital experiences whether games, concerts, sports events or more. → Building Roblox games at themetakey.com → Follow Mateen Soudagar for more insights into #ai #roblox #tech #web3 #gaming #fortnite

🎮 Roblox Stock Price Forecast Amid Hindenburg Allegations: What Investors Need to Know 📉 Roblox, the popular gaming platform, has recently found itself in the spotlight following serious allegations from Hindenburg Research. The short-selling firm’s report claims that Roblox has inflated user metrics and failed to address child safety concerns. Key Allegations: Inflated User Data: Hindenburg estimates Roblox may have exaggerated daily user numbers by 25% to 42% and engagement hours by up to 100%. This raises concerns about the company’s transparency with investors. Child Safety Issues: More troubling are claims of child exploitation on the platform. The report highlights inappropriate behavior in chat rooms and criminal cases involving predators allegedly using Roblox to target minors. 🔍 Roblox's Response: Roblox has denied these accusations, calling the report "misleading" and reaffirming its commitment to user safety through moderation technology and AI-powered protections. However, the stock market reaction was immediate, with shares dropping about 2% on Tuesday and a sharper 10% decline in premarket trading. 🌐 Impact on Roblox Stock Price Forecast: For investors, the allegations raise questions about Roblox's long-term growth and reputation, particularly in light of ongoing scrutiny. The Roblox stock price forecast could see further volatility as the company navigates these challenges and works to maintain investor confidence. 📊 Wider Implications: As Roblox deals with these serious claims, its market value of $27 billion and user base—primarily children under 13—are at stake. This controversy could influence both regulatory actions and investor sentiment moving forward. 🔗 Learn more about the Roblox stock price forecast and how these allegations could impact the future of the platform. 🌐 https://lnkd.in/dYFniK2J 🚀 Join our Premium Service! 1 Month Free Trial: https://lnkd.in/dRSThpvX 🎉 📢 Stay Updated with Our Free Signal Telegram Group: t.me/SignalMasterMind_Free 🔔 #RobloxStockPriceForecast #GamingIndustry #HindenburgResearch #InvestorAlert #ChildSafety #Roblox #StockMarketNews #InvestmentOpportunities #TechInvesting

Many adults heard the phrase “Robux” for the first time last holiday season when the virtual currency of gaming platform Roblox landed on the top of most wish lists. Roblox – with a stunning 70 million users – has attracted a devoted fan base, especially among teens, with its wide offering of games, from simulations and adventure games to ones you design yourself or with friends. This week, Roblox will report its first quarter earnings. And it will have to prove to Wall Street there’s more growth up ahead. In its fourth quarter of 2023, Roblox revenue was $750 million, up 30% year-over-year – but had a net loss of $323.7 million. Investors have cooled. The stock has shuffled between $25 and $45 for many months after hitting a peak, just above $130 in 2021, the year the company went public. “The company has faced high operational costs and it needs to sustain rapid growth at the same time,” said Matilda Beinat, an AR/VR analyst at tech intelligence firm ABI Research. “Investors have wondered if that can be feasible.” Read more ⬇️

As someone deeply engaged with market dynamics and trends, I recently came across Hindenburg Research's critical assessment of Roblox Corp. This report has certainly shaken the investment community, uncovering alleged discrepancies in Roblox's user metrics and significant safety concerns on the platform. It's eye-opening to see how quickly a stock can tumble, dropping up to 9.4% in a single day. The implications of inflated user metrics, potential exposure to regulatory risks, and user safety issues raise critical questions about the sustainability of high valuations in tech stocks. What are your thoughts on investment strategies in light of such market developments? Are there lessons we should reflect on regarding due diligence in stock evaluations? For those interested in the nuanced world of finance, consider exploring the insights and investment opportunities offered by Sprott Money. They provide valuable resources and investment options that align with ever-changing market conditions. Learn more here: https://lnkd.in/gY8b-CxP #Roblox #InvestmentStrategy #MarketVolatility #FinancialInsights #SprottMoney #SilverSqueeze

🚨 Big news from gaming giant Roblox! 🚨 🤑 Roblox is now letting developers sell their games for real money, not just Robux. This is a massive shift that could redefine the creator economy on the platform. 💡 By enabling real-world currency transactions, Roblox is giving developers more flexibility and greater financial incentives to create high-quality content. 💪 The main reason? It’s all about empowering creators and expanding Roblox's influence beyond in-game purchases. This move allows developers to grow their businesses, attract more players, and, ultimately, innovate the gaming space. 💸 More revenue streams. 💻 Bigger opportunities for creators. 🌎 Global impact for the gaming economy. What do you think this will mean for the future of gaming platforms? #Roblox #GamingIndustry #CreatorEconomy #Fintech #PaymentSolutions #Developers #Innovation #DigitalEconomy

“If you are an investor in Roblox you might be concerned about the health of the business, but I don’t think anything that came through in the report should worry you” if you're a brand or IP owner investing in the platform. Roblox’s recent earnings report sent the stock price down over 22%, but was that an overreaction? What do the numbers behind the business actually say about their trajectory and how investors, brands, and IP owners alike should be thinking about the platform and its utilization in the near future?  Join Supersocial Inc. Director of Business Development Matthew Kanterman, CFA on Into the Metaverse, as he breaks down this earnings report and a handful of the other biggest stories from the last few weeks of metaverse and gaming related news! Watch the full episode here: https://lnkd.in/g98jZxxs