Roblox’s Poor November Numbers Causes Stock Price to Plunge

The video gaming industry is one of the fastest-growing in the entertainment sector. The pandemic helped push the sector, but it might be struggling to keep up the numbers at the moment.

Roblox’s November Numbers Disappoint

Video game company Roblox revealed its user data for November a few hours ago, and it didn’t perform as investors had expected. Roblox recorded 49.4 million daily active users in November, which is below the 50.5 million reported in October.

The 49.4 million for November represents a 35% increase from the same period last year. However, the outage experienced between October 28 and October 31 affected the platform’s performance. The company said it lost more than $25 million in bookings during the outage.

Stifel analysts told investors that “Based on management’s commentary with 3Q21 earnings, including October performance, results came in slightly below our expectations and appeared to trail the historical trend line whereby November typically experiences a modest sequential uptick vs. October.”

The shares of the company dipped by more than 9% after Roblox reported its November figures. By the end of the trading hours on Wednesday, RBLX was trading at $97.87 per share, down by more than 9% during the session.

RBLX Could Record Further Losses

Roblox is expected to record further losses over the coming weeks. According to analysts at KeyBanc, the poor user numbers could extend to December, and that would also affect its total revenue.

The analysts said, “Considering management has also said December is roughly 80% larger than the October/November levels, we believe this means 4Q numbers are likely to come down in the immediate term. We were previously looking at roughly $800 million in bookings for 4Q. But if that trend holds, it would seem to indicate closer to $780 million. Our model is under review.”

If Roblox experienced a dip in daily users and revenue, then the stock price could struggle to stay above the $90 mark over the coming weeks.