Is Roblox (NYSE:RBLX) Stock a Better Investment After The Recent Fall?
2:52 pm Wednesday, July 28th, 2021
The online entertainment space has attracted legions of investors in recent times and one of the stocks that could prove to be interesting for many investors at this point is that of Roblox (NYSE:RBLX). Those who had got into the stock at the time of listing are possibly sitting on handsome gains at this point in time.
However, it should be noted that the past few months have been quite a struggle for the Roblox stock. The stock had gained prominence as the pandemic had resulted in a massive surge in demand for online entertainment options. Now that the pandemic is on the way out, there are concerns among investors if the stock could still be relevant.
It is perhaps a legitimate concern but at the same time, investors who are looking into a longer-term play could consider waiting for further dips in the Roblox stock price before making a move of any sort. After having touched $100 a share earlier on in the year, the stock declined steadily through June and July.
Last Friday, it was trading at $82 a share and that reflects earnings per share in the trailing 12 month period of negative $1.47. Investors who look for value in the markets are probably going to be put off by that negative earning figure but if the company can push its earnings per share figure in the positive, then there might be considerable upside in the stock for the long term. Hence, it might be a good move to perhaps wait on the sidelines for a bit longer.
