RBLX — All updates

Let's talk about Roblox and its downgrading. This is disappointing. Stocks are down by more than 8% at the moment. Since the beginning of the year, this stock has performed very poorly , whether we talk about year-to-date performance or on an annual basis.

Jefferies issues a downgrade to Roblox's rating. If you have children, you know this platform. This platform allows them to play games online ; it is a comprehensive platform. You can create different worlds.

There are games like "Rifles" and others, and it seems that not enough children play them.

Next up on the opposite end of the spectrum we've got roadblocks looking like it is about to break out of its chart. You can see here RBLX on the daily time frame has been contained within this declining parallel channel for the majority of this year. today's price action gapping up over this upper range of the parallel channel and doing a continuation push. Very nice push.

>> Um anyone trading roadblocks? This is straight up today. It's up 7.8% here. >> Oh jeez, what is the news here with this one now? >> Uh European Commission designates chat GPT is a very large online search engine.

Reddit, Roblox as very large online platforms under their digital securities act. That to me is is not really material at all. Stocks up though.

Roblox. Let's take a look. Uh, nice revenue. Okay. Revenue growing 35% year-over-year. Margins are growing. Profit gross profit margin last couple years. It's moved up. It looks like it was flat early on or it's kind of returned to this 23. That seems low for a software company. 23%.

Roblox. I don't know, man. You want to take a look at that? Okay, let's take a look. See what we got.

Roblox. Let's take a look. Uh, nice revenue. Okay, revenue growing 35% year-over-year margins are growing. Profit gross profit margin last couple years it's moved up. It looks like it was flat early on or it's kind of returned to this 23.

That seems low for a software company. 23%. What is their cost of revenue? that many developers. That seems PG's PNG is on your radar. Maybe we can get to it tonight. See how how much time we got.

R&D. Oh my god. 1.5 billion of R&D. Look at this R&D expense. Come on, guys. Plus selling and marketing. There's your admin. They probably have a good slug of stockbased comp. And then what did they what they make?

Income. in the this is operating in income is not supposed to be upside down like this. Income should be positive. They have never made positive operating income in their history.

They have almost five billion in revenue and they can't make a single dollar in profit. Why is it that is it that hard? You're bringing five billion dollars in the front door. And to do that, it cost you six.