Is Roblox (RBLX) Stock a Buy at New 52-Week Lows?

Today’s price action in the markets has been very bearish. Indeed, the heat map for the market looks like a sea of red, rather than the Christmas tree we’re used to most days. Unfortunately, for investors in Roblox (NYSE:RBLX) and RBLX stock, this has meant fresh new 52-week lows today.

Roblox Stock IPO
Source: Miguel Lagoa / Shutterstock.com

In earlier trading, RBLX stock hit a low of $31.62 per share, down more than 77% from its all-time high of more than $140 per share set late last year.

It’s been a rather precipitous fall for this metaverse-related company. Despite a surge in interest around the metaverse last year, as companies such as Meta Platforms (NASDAQ:FB) shifted their focus to this space, companies like Roblox became a focal point for growth investors. This catalyst appears to have fizzled.

Additionally, macro risks tied to higher interest rates have hurt valuations across the board. As a company with negative earnings per share (EPS) over the past year, Roblox is a company many investors aren’t comfortable owning in this environment.

That said, sometimes the market beats up companies a bit too much. Now, many investors may be asking if Roblox is a buy at these rock-bottom prices.

Let’s see what the analysts think of this $19 billion company.

Analysts Take on RBLX Stock

  • Eric Sheridan of Goldman Sachs downgraded RBLX stock in a big way last week, slashing his price target to $50 from $108 and downgrading this stock to “neutral” from “buy.”
  • Citigroup’s Jason Bazinet initiated coverage of Roblox earlier this month, assigning a “buy” rating and a $59 price target, implying 85% upside from here.
  • Earlier this month, analysts from BTIG and MKM Partners also provided their targets on RBLX stock. Analyst Erick Handler of MKM Partners maintained a “hold” rating on Roblox, with a price target of $55 on this stock.
  • BTIG analyst Clark Lampen provided an $84 price target, with a “buy” rating.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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