Roblox shares tumble 9% in morning trading as the videogame company yesterday issued August metrics showing estimated bookings rose 5% to 7% from a year earlier and estimated average bookings per daily active user were down 14% to 16%.
"The data is not supporting the metaverse hyper-growth narrative," Benchmark analyst Mike Hickey tells the WSJ. "Growth stocks don't deliver single-digit growth. They deliver double-digit growth."
Roblox has been working to add users outside of North America and Europe, but Hickey says users who sign up from most other regions typically don't spend as much.
"Revenue growth is stalling and expenses are continuing to grow higher, putting pressure on profits," he says.
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