Is Roblox's Q3 Earnings worth 18%+?
$Roblox Corporation(RBLX)$ Q3 earning lies in the optimization of expense growth (infrastructure expenses and total employee compensation) and the fact that despite a high base, subscription revenue growth still exceeded expectations.
This has given investors relatively confident guidance and expectations for sustained growth in the two areas that the market cares most about: reducing losses and future growth.
Even though the current valuation is not cheap, during the year-end window of liquidity relief and driven by market sentiment, Roblox's growth story (advertising, VR/console games) has begun to unfold along the neutral to optimistic scenario assumptions.
Additionally, due to Roblox's strong seasonality, short-term performance fluctuations can be amplified, so it is recommended that investors pay attention to management's outlook for next year, especially regarding advertising progress and loss reduction targets.
Roblox is also slated to host its annual investor day on November 15.
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