Analysts Are Cutting Price Targets Of These 5 Stocks

4. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 61

Roblox Corporation (NYSE:RBLX) provides an online entertainment platform, providing 3D gaming and social experiences for users. Elite hedge funds were extremely bullish on Roblox Corporation (NYSE:RBLX). At the end of December 2021, 61 hedge funds held stakes in Roblox Corporation (NYSE:RBLX), up from 50 funds in the previous quarter. 

Roblox Corporation (NYSE:RBLX) published its Q4 earnings on February 15, posting a loss per share of $0.25, missing market consensus by $0.13. The company’s revenue for the fourth quarter came in at $770.12 million, below Street estimates by $5.88 million. 

On March 17, Stifel analyst Drew Crum trimmed the price target on Roblox Corporation (NYSE:RBLX) to $65 from $90 and kept a Buy rating on the shares, declaring the company’s February KPIs as “mixed.” However, the analyst told investors that he expects improved bookings in late Q2 through the second half of the year, and the reward/risk is “better to the upside” with the pullback in the shares.

According to the Q4 database of Insider Monkey, Renaissance Technologies is the leading shareholder of Roblox Corporation (NYSE:RBLX), owning 5.3 million shares worth $557 million. 

Here is what Guardian Fund has to say about Roblox Corporation (NYSE:RBLX) in its Q2 2021 investor letter:

“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.

Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.

Over the first quarter of 2021, Roblox reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”