Meanwhile, the stock ended the week below its 200-day simple moving average and seemed embarked to tag the $77 horizontal support shown on the chart.
The chart also showed that a well-defined descending price channel was formed and last week’s action nearly closed the open gap that was left behind after the company published its latest quarterly report.
Even though the share price surged for a few days following this event, the market’s sentiment appeared to take a U-turn on 22 November when shares of the gaming platform declined nearly 11% and started their journey to its recent lows of $84.37 per share (7 January close). The Roblox chart shows the stock has been on a sharp downtrend since it hit its November all-time high despite nailing the market’s estimates for the firm’s revenues for the third quarter of the 2021 fiscal year.Ĭuriously, the decline seemed to start only days after the company held its 2021 Investor Day event on 16 November. Roblox stock analysis: Price drivers and technical view What can be expected from this metaverse stock in the challenging environment? In this article, we’ll take a closer look at the latest Roblox stock news, technical and fundamental situation, and third-party predictions to outline plausible scenarios for the future. Meanwhile, the latest quarterly earnings report from the company unveiled that Roblox Corporation may be starting to lose the fight against its tough comparables from last year as the pandemic tailwind that once lifted its performance is starting to lose steam.
Roblox stock value has dropped nearly 40% from its 22 November all-time high of $141.60 per share as negative momentum for growth stocks has accelerated amid the confluence of multiple catalysts.įirst, concerns related to quickening US inflation along with recent remarks from the Federal Reserve regarding an upcoming monetary policy change have pushed the yield of US Treasury bonds to their highest level since the Covid-19 pandemic started.įor young companies in up-and-coming ecosystems such as Roblox, which was created in 2004, higher Treasury yields are considered a negative price driver as they tend to lead to sharp declines in the valuation of high-risk equities. Roblox stock price prediction: What’s next for the metaverse builder? – Photo: Shutterstock
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