Roblox Corp (RBLX) Loses 9.7% Ahead of Earnings

We recently published 10 Stocks Investors Are Dumping. Roblox Corporation (NYSE:RBLX)  was one of the worst performers on Tuesday.

Roblox snapped a two-day winning-streak on Tuesday, shedding 9.67 percent to close at $78.84 apiece as investors tracked an overall market pessimism, while unloading positions ahead of the results of its earnings performance.

In a notice on its website, Roblox Corporation (NYSE:RBLX) said that it would announce its financial and operating highlights after market close on Thursday, February 5. A conference call will be held to discuss the results.

In other news, Roblox Corporation (NYSE:RBLX) received bullish coverage from Oppenheimer, having issued an “outperform” rating with a $150 price target. The new figure marked a 90 percent upside potential from its latest closing price.

According to Oppenheimer, it does not expect the new age verification system in all regions to negatively impact the company.

Earlier this month, Roblox Corporation (NYSE:RBLX) said that users in the US are now required to complete an age check to chat with others, in line with its efforts to enhance user safety.

Roblox began requiring the age check for chat access in December in Australia, New Zealand, and the Netherlands, following its phased rollout announcement in November. To date, over 50 percent of daily active users in Australia, New Zealand, and the Netherlands have already completed the age check.

Globally, tens of millions of users have already completed the age check, and Roblox anticipates many more to follow.

While we acknowledge the potential of RBLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.