Investors may want to keep an eye on Roblox Corp. (RBLX).
Over the last few days, the stock pulled back on a wider than expected Q2 loss, and news bookings fell 4% year over year. For the quarter, the company lost $176.4 million, or 30 cents a share, which was wider than the expected loss of 25 cents. Bookings fell to $639.9 million, which was below expectations for $657.2 million.
However, don’t write the gaming stock off just yet.
Morgan Stanley just raised its price target on RBLX to $32 from $25, with an equal weight rating on the stock. As noted by TheFly.com: The company’s Q2 results were mixed, but July bookings were “a relative bright spot” as bookings reaccelerated to 10% year-over-year growth that he calls out as the highest year-to-date.
Wedbush also raised its target to $34 from $28, and noted that the company did deliver a solid end to the second quarter, coupled with a promising start to the third quarter.
Technically, after dipping to $42.50, the RBLX stock is recovering. It last traded at $49.56.