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Roblox stock rebounds 50% after earnings report: What next?

Shares of online gaming platform Roblox Corporation (NYSE: RBLX) rebounded more than 50% from its recent low despite the release of disappointing Q1 results.

Roblox stock rebounds 50% after earnings report: What next?

Shares of online gaming platform Roblox Corporation (NYSE: RBLX) initial dropped more than 10% following the release of first-quarter earnings results on Tuesday, May 10. The stock plunged to a fresh 52-week low of $21.65 on May 11. While later the stock rebounded more than 50% from its recent low despite the release of disappointing Q1 results. As of this writing, the $RBLX trades at $32.

Roblox posted a loss of 27 cents per share versus a loss of 21 cents per share expected by Wall Street. The company's Q1 revenue was $537.1 million, up by 39 per cent compared with Q1 2021 but the numbers failed to hit the Street mark of $645 million. The company reported 54.1M average daily active users in Q1, up 28% year over year and the average bookings per daily average user were $11.67.

"We remained focused on delivering our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors," CEO of Roblox David Baszucki said. "Over the past two quarters, we have launched a number of notable innovations including spatial voice and layered clothing that will continue driving user growth, engagement and monetization." – he added.

$RBLX technical outlook

In the short-term, if the stock continues the short-term bullish momentum, then the immediate resistance near $37 breaks and closes above this resistance level then expects the market to zoom up to $52 and $55. On the downside, the crucial support remains the 52-week low of $21.65, in case the stock break this area, below which the slide could further get extended towards $18/16.

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