Roblox (NYSE:RBLX) might still be one of the hottest online games for kids, but RBLX stock has been limping along the last few months. Since its initial public offering (IPO) in April of 2021, the stock had largely been trading up. But recently, it has been on a steep decline. Hopefully, today’s news of an upgrade could help RBLX stock get back on its feet.
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Beginning in November of last year, RBLX began a downward plummet. The stock’s fall from an all-time high of over $126 continued until it dipped below its IPO price. All in all, the stock is reaching new all-time lows, trading as low as $55 at times.
This downfall does not at all mirror the bullish sentiment that was present throughout much of last year. However, these bearish attitudes aren’t expected to continue much longer. This week is shaping up to be a big one for Roblox.
RBLX Stock Gets Saved by Bank of America Upgrade Ahead of Q4 Earnings
Investors are hoping that RBLX stock has officially hit its price bottom. As Roblox gets into a busy few days, analysts seem to be confirming that it is ready for a turnaround. Bank of America (NYSE:BAC) is catalyzing gains for RBLX thanks to its newest analyst note on the stock. Analyst Omar Dessouky is getting quite bullish on the tech play, upgrading RBLX to a buy rating. Dessouky’s upgrade also comes with an $84 price target for the stock.
The reason for the upgrade is largely tied to its status as a metaverse stock. Since the metaverse became an investing trending in October of last year, there has been an increasing interest in companies like Roblox, who provide spaces through which people can meet as avatars and hang out together, play games or listen to live music. Dessouky and other RBLX bulls are hoping the company can leverage this interest and mount a comeback as we get deeper in 2022.
In the meantime, Roblox will set the tone for the year tomorrow, as it prepares to share its Q4 earnings results with shareholders. Analysts are expecting a loss per share of about 7 cents on the report tomorrow, as well as revenue totaling $778.3 million. Eyes will also be on metrics like daily active users, where the company is hoping to replicate the success of its 31% increase in Q3.
As news of the report makes its rounds, RBLX stock is trading up by 3%.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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