Roblox stock closes up after initial earnings dip
Summary
Shares of Roblox closed up more than 3% on Wednesday, marking a turnaround from an initial 10% plunge Tuesday evening after the company published disappointing first-quarter earnings. While its unclear whats driving the surge, the company appeared bullish about the current quarters growth rates. The online gaming platform has been facing tough comparisons with its performance earlier in the pandemic, when kids were glued to their televisions and gaming platforms as a way to entertain themselves in lockdown. Right now, it looks like it bottomed in March, which is good, so sequentially our year-over-year growth rates in April were better than they were in March, and on a year-over-year basis I expect that to be true in May and again in June," Roblox CFO Michael Guthrie said on the companys conference call with investors Wednesday morning, according to a rough transcript. "In terms of the overall shape of the curve, normally ... May is lower than April, and then June is back up higher than May, and really, the opening of the summer season, where normal seasonality starts to kick in," Guthrie added.