Roblox Stock Falls on Goldman Sachs Downgrade

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Goldman Sachs downgraded RBLX to “sell” from “neutral”

Goldman Sachs downgraded Roblox Corp (NYSE:RBLX) to “sell” from “neutral” this morning, sending the shares down 5.3% to trade at $28.88 at last glance. The firm cited a weaker macro environment, lower revenue growth, and broader industry maturation. This move lower has RBLX extending yesterday’s 7.1% drop, after Jefferies said the company’s user engagement was worsening, though the analyst in coverage raised its price target due to “improving (albeit volatile) group multiples.” 

On the charts, Roblox stock has struggled to rally from its recent May 10 record low of $21.65, with overhead pressure at its 50-day moving average. Year-to-date, the equity is already down 71.7%. 

Despite calls outnumbering puts on an absolute basis, the stock’s 10-day put/call volume ratio of 0.80 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is in the elevated 97th percentile of its annual range. In other words, this suggests puts being picked up at a much faster-than-usual rate over the last two weeks. 

For those looking to weigh in, options look like a solid move at the moment. According to its Schaeffer’s Volatility Scorecard (SVS)  tally of 74 out of 100, RBLX has consistently realized bigger returns than options traders have priced in over the last 12 months.