It's time to get out of Roblox following its strong December report, according to Morgan Stanley. Analyst Matthew Cost downgraded shares of the gaming company to underweight from equal weight, saying upside is limited from here after the stock's recent outperformance. On Tuesday, Roblox shares closed 11% higher following its December 2022 metrics report, which showed estimated bookings came in between $430 million and $439 million for the month , or 17% to 20% higher year over year.
"However, following the significantly stronger than expected December results, RBLX is now up 28% YTD and we believe the 1H:23 reacceleration is now fully priced in, with more mixed catalysts ahead," Cost added. Roblox shares may be surging to start 2023, but they took a beating last year, closing down about 72% in 2022. The analyst lowered his price target to $24, down from $27.50, implying shares could tumble another 32% from Wednesday's closing price.
I’m holding and will add more, Roblox is essentially the Metaverse for children 👍🏾
Oh, now is time to sell at $37, not when it was at $137. What was the coverage back then?
If you're always doing the opposite of what JP Morgen says, you would be great.