Roblox Corp (NYSE:RBLX) shares jumped 8.5% to trade at $65.71 at last check, after the gaming platform reported a strong fourth quarter marked by surging bookings, daily average users, and hours engaged on its platform -- all of which topped Wall Street expectations.
The upbeat user metrics helped offset a wider loss of $0.45 per share on revenue of $2.2 billion. While the company remained unprofitable, both figures still beat estimates for a $0.49 per share loss and $2.09 billion in revenue.
Analysts are chiming in, with seven brokerages issuing price-target cuts. Most notably, Needham trimmed its price target from $159 to $105 but maintained a "buy" rating, suggesting confidence in the stock's longer-term upside.
RBLX earlier is poised to snap a three-day losing streak that featured a nine-month low of $60.08 in the previous session. The $60 level appears to be acting as a layer of support. Despite today's bounce back, the stock remains down 19% this year already.
Roblox's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 85, indicating RBLX has tended to exceed option traders' volatility expectations during the past year.
