The firm downgraded shares of the video gaming company to underweight from equal weight, saying upside is limited from here.
It's time to get out of Roblox following its strong December report, according to Morgan Stanley. Analyst Matthew Cost downgraded shares of the gaming company to underweight from equal weight, saying upside is limited from here after the stock's recent outperformance. On Tuesday, Roblox shares closed 11% higher following its December 2022 metrics report, which showed estimated bookings came in between $430 million and $439 million for the month , or 17% to 20% higher year over year.
"However, following the significantly stronger than expected December results, RBLX is now up 28% YTD and we believe the 1H:23 reacceleration is now fully priced in, with more mixed catalysts ahead," Cost added. Roblox shares may be surging to start 2023, but they took a beating last year, closing down about 72% in 2022. The analyst lowered his price target to $24, down from $27.50, implying shares could tumble another 32% from Wednesday's closing price.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks making the biggest moves midday: Goldman Sachs, Morgan Stanley, Roblox, Alibaba and moreThese are the stocks posting the largest moves in midday trading.
Read more »
This payment stock can surge 25% as a potential recession means less competition, Morgan Stanley saysGlobal Payments will see less competition in the event of an economic slowdown, boosting the stock, according to Morgan Stanley.
Read more »
Morgan Stanley downgrades IBM, says stock's outperformance will be harder to sustainIBM may suffer from decelerating revenue growth and changing economic cycle dynamics, Morgan Stanley warned.
Read more »
Morgan Stanley beats profit and revenue marksMorgan Stanley stock fell 0.2% on Tuesday after the investment bank’s adjusted profit beat Wall Street expectations. Morgan Stanley said its fourth-quarter...
Read more »
Morgan Stanley is set to report fourth-quarter earnings—here’s what the Street expectsMorgan Stanley is set to report fourth-quarter earnings before the opening bell on Tuesday.
Read more »
Morgan Stanley's earnings top Wall Street expectations, helped by record wealth management revenueMorgan Stanley reported fourth-quarter earnings before the opening bell on Tuesday.
Read more »