Roblox (RBLX) shares are diving after reporting wider-than-expected losses in its second-quarter earnings. Missing on earnings estimates with losses of $0.46 per share, the video game company topped revenue expectations by drawing in $780.7 million. Roblox did see an increase in daily active users and monthly player counts. "They're just not as profitable as I think a $20 billion valuation implies they should be," Michael Pachter, Wedbush Managing Director of Equity Research, tells Yahoo Finance Live. "They told us to expect single-digit profit margins," later adding: "The Street read that as 9% and it came in at 4.9%, so they really surprised people with how bad their profits were." Pachter cites Amazon CEO Andy Jassy's pivot to profitability after a series of stock losses as inspiration Roblox should aspire to. Pachter also examines Take-Two Interactive's (TTWO) earnings miss ahead of forecasts for Grand Theft Auto VI's release, Microsoft's (MSFT) deal with Activision-Blizzard (ATVI), and the metaverse's future in gaming.
#Roblox #youtube #Amazon
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