Roblox tests $40 psychological mark ahead of Q1 2024 earnings release

Roblox is preparing to release its Q1 2024 financial results.

The markets imply a 13.8% move in the stock during the day following the release of the report.

The company's revenue is expected to rise to $892.8 million (up 15.4% year-over-year), while earnings per share may fall to -$0.54 (-0.44 in Q1 2023).
 

Higher-than-expected revenues and/or an increase in earnings may result in Roblox's stock rising toward or above the psychological $40 level.

Founded by Roblox Corporation as an immersive gaming and creation platform, Roblox has managed to amass 71.5 million daily active users base with a focus on the teenagers.

Apart from the growing user base, the company has managed to increase brand engagement with over 300 cumulative brand activations on Roblox as of Q4 2023.

The company has also launched an AI chatbot, trying to take advantage of the still ongoing AI mania. The chatbot allows users to communicate with each other regardless of the language they use.

However, the company may still face financial difficulties in terms of high operational costs as well as growing competition.

Epic Games, Roblox's major competitor, has already launched the tool that allows its creators to build and publish "experiences" directly into Fortnite - one of the leading games with over 200 million average monthly players.