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Roblox Developer Conference 2019

Ian Tuttle

Roblox (NYSE:RBLX) shares slipped more than 1% in premarket trading on Friday as Bank of America cut its estimates after the company released its monthly bookings data for November, which were hit by the strong U.S. dollar.

Analyst Omar Dessouky lowered his estimates for 2022 revenue and earnings per share to $2.817B and a loss of $1.58 after the new data, down from a previous estimate of $2.835B and a loss of $1.59 per share.

Dessouky, who rates Roblox (RBLX) shares a buy, noted the company has missed opportunities, but there are still “shots on goal” available to the company, borrowing a pun from this month’s World Cup.

“While the November results were a slight negative surprise to bulls on the stock, we think RBLX’s solid return to growth since June (6 consecutive months of positive [year-over-year] growth) suggests growth normalization is underway as COVID impacts phase out,” Dessouky wrote in a note to clients.

“A reacceleration in Dec and a solid ’23 start should support our valuation and multi-year growth thesis, which is ultimately driven by content and innovation,” Dessouky added.

The analyst also pointed out that his assumption for 2023 is for Roblox (RBLX) to see bookings growth of 20% or more year-over-year, aided in part by new content and continued innovations to help drive monetization.

Roblox (RBLX) recently poached longtime Apple (AAPL) executive John Stauffer to be the company’s new vice president of engineering.

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