roblox stock up?
Shares of Roblox Corp. rose nearly 33%. The increase in shares of gaming platforms from the United States (US) was due to a surge in demand for video games "MeepCity" and "Adopt Me!". People have turned to video games for entertainment during the last year's long isolation. This is fueling a boom that has not slowed down despite schools reopening and Covid-19 restrictions having been relaxed.
Roblox, among the world's most popular gaming sites for kids, said daily active users grew 31% to 47.3 million during the third quarter and gamers spent 11.2 billion hours on the platform. "Based on our October results, we appear to have had a good start to the final quarter of the year," said Chief Financial Officer Michael Guthrie.
Noted, orders jumped by 28% to USD637.8 million. Analysts expect a jump of $636.5 million, according to IBES data from Refinitiv. CFRA Research analyst John Freeman said Roblox's growth was driven by its video games, elements of social media, and the way Roblox developed the platform to build video game experiences.
San Mateo, California-based Roblox has capitalized on the game's explosion by allowing users to create in-game metaverses, shared virtual worlds where their avatars can interact with others. It has also attracted users by hosting virtual concerts of artists such as Twenty One Pilots and rapper Lil Nas X.
"This company is not only going to be a revenue engine, it's going to be a revenue engine," Freeman added.
CFO Guthrie said Roblox was making healthy cash from operations despite significant investments in hiring and the developer economy. On an adjusted basis, he reported a loss of 13 cents per share, compared with an estimate of 14 cents per share.
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