Jim Cramer Is Bearish On These 5 Stocks

1. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 38 

Roblox Corporation (NYSE:RBLX) is a California-based company that allows developers and creators to build, publish, and offer digital 3D experiences, including Roblox Client, Roblox Education, and Roblox Cloud. Roblox Corporation (NYSE:RBLX) is one of the stocks that Jim Cramer has been bearish on. He spoke about the company in a December 20 segment of Mad Money: 

“Roblox is too expensive … Not making money, too.”

On December 22, Roblox Corporation (NYSE:RBLX) shares dropped nearly 8%, approaching its 52-week low, as investors continued to sell-off the stock after it posted weaker-than-anticipated November bookings earlier this month. Over the past month, Roblox Corporation (NYSE:RBLX) shares have plummeted more than 16% and have sunk more than 73% year-to-date.

Wolfe Research analyst Gal Munda on December 21 downgraded Roblox Corporation (NYSE:RBLX) to Underperform from Peer Perform with a $24 price target. The company’s “disappointing” November metrics potentially provide concern in company execution, the analyst wrote in a research note.

According to Insider Monkey’s data, Roblox Corporation (NYSE:RBLX) was part of 38 hedge fund portfolios at the end of Q3 2022, and Jim Simons’ Renaissance Technologies is the biggest position holder in the company, with 10.6 million shares worth $380.6 million.

Tao Value mentioned Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter. Here is what the firm said:

“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt in”.

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