🌟 Roblox: The Bottom Just Fell Out of the Metaverse

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Ticker Reports for May 9^th

RBLX $30.66 (-21.45%)

BKNG $3,789.32 (+3.53%)

UBER $67.88 (+2.23%)

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(From InvestorPlace)

Roblox: The Bottom Just Fell Out of the Metaverse

There were high hopes for Roblox (NYSE: RBLX) going into the Q1 release, and they were shattered on the rocks of reality. The reality is that the metaverse, as neat as it sounds, just isn’t producing the accelerating growth that market participants had come to expect. The last report, Q4 2023, provided hope and pointed to much stronger results than were reported for Q1. The Q1 results aren’t bad but are far short of expectations and compounded by even weaker guidance that has deflated the market.

The upshot is that Roblox may now trade at a reasonable level. The market is down 30% from the pre-release level in pre-market trading and is still above critical support at the bottom of its trading range. The market may fall another 10% to retest the bottom, but support is expected to be as strong at this level as it has been. The risk is that RBLX shares will fall to a new low, opening the door to a deeper decline that could shave another 50% off the price.

Roblox's Good Quarter Falls Far Short of Expectations

Robust bookings figures from Q4 led the market to expect a significantly larger growth spurt in Q1 and 2024. The Q1 revenue of $801.3 million is up 22% compared to last year and slightly outpaced the consensus estimate but is offset by whisper numbers that were higher, weak bookings and guidance.

The booking miss is more profound, considering that analysts have been trimming their targets and lowered the bar during the quarter. Also, top-line growth is slowing from the high-20% range to the low-20% range and may fall into the teens by year-end. Bookings in Q1 came in at +19%, decelerating from +25% in Q4, suggesting additional slowdown should be expected.

The internal data is not all bad but aligns with an outlook for decelerating growth. Average daily active users and average monthly unique players grew solidly at 17% and 13%, but the growth slowed sequentially from 22% and 18%, with no pickup expected this year. Bookings growth is sequentially flat at up 6% but is offset by decelerating engagement growth. Hours are up only 2% compared to 21% in Q4 and unlikely to accelerate this year.

The margin news is the best, but it comes with a caveat. The company significantly improved its operating losses, cash flow, and free cash flow to drive outperformance on the bottom line but at the cost of investment. The business cut its CAPEX by 50%, which may have something to do with the quarterly results, but GAAP losses persist.

Guidance is among the worst news items. The company lowered its guidance for FY bookings, increased its outlook for annual losses, and provided a weak outlook for Q2, which may lead to another guidance reduction for this tech stock.

Expect Analysts to Cap Upside for Roblox

Ironically, Roblox is listed among the Top Rated Stocks by analysts on the Marketbeat platform. That is because the trend in analysts' sentiment has been bullish over the last twelve months, playing into the post-release disappointment felt today. Upgrades and price target revisions lifted the rating to Moderate Buy from Hold and the price target by 25%, but that trend is unlikely to continue. Investors should expect downgrades and price target reductions over the next few days and weeks. The risk now is that Roblox will remain range-bound and at the low end of its range.

The technical outlook could be better. The 30% discount is an attractive entry but may not lead to gains soon, if at all. Roblox is growing and building leverage but continues to struggle with growth outside of its largest demographic, nine to twelve-year-olds, and profitability is still years away. With growth slowing and analysts on track to reset the consensus outlook, the risk of a new low is high.

RBLX stock chart

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Airbnb Stock Plummets After Earnings, But is It a Buy?

First-quarter earnings are arguably the most important reports for any stock to release, as they set the tone for the rest of the year and give investors insight into their current—and potential—holdings. After reporting its own set of first-quarter 2024 results, shares of Airbnb Inc. (NASDAQ: ABNB) fell by 8.5% on what could be the wrong conclusions coming from the market.

After digesting what happened within the company’s financials, investors could renew their hopes to see Airbnb stock return to its former glory and even make potentially new all-time high prices. Markets and analysts give investors enough evidence to believe in Airbnb’s bullish potential, but that’s not all.

Compared to peers like Booking Holdings Inc. (NASDAQ: BKNG) and Trip.com Group Limited Inc. (NASDAQ: TCOM), Airbnb holds the most market attention for good fundamental reason. Investors could soon realize that the price reaction is more part of a broader economic worry within the consumer discretionary sector.

Understanding Investor Worries

After expanding month after month since 2020, the ISM services PMI index has fallen into a contraction, according to its latest reading for April 2024. Because discretionary spending and services stocks like Airbnb fall into this category, investors may have gotten slightly spooked.

Nothing wrong with taking profits – if there are any -though investors should consider if they can stomach the realization of how many percentage points of upside they potentially left on the table.

The services sector isn’t the only one contracting; manufacturing businesses have also been contracting for over 15 months. Because of this, the Federal Reserve (the Fed) may consider cutting interest rates sooner rather than later, even with stubbornly high inflation rates.

Rate cuts could push consumer discretionary spending toward Airbnb, as it is directly tied to domestic and international travel budgets. At the same time, even if the Fed doesn’t cut rates, rent inflation is reported to be one of the main drivers of the sticky U.S. inflation rates experienced today.

Because consumers – in their right minds – won’t lock in leases at record high rates, nor are they looking to finance a new home at 7.5% mortgages and an average home price that is now 32% higher than pre-pandemic prices, Airbnb also becomes a solution for those looking to weather the housing inflation storm.

Airbnb’s Fundamentals Show

The company’s key performance indicators (KPIs), such as gross booking value and nights and experiences booked, rose by attractive rates over the year.

According to management’s shareholder letter, gross bookings jumped by 12% to reach $22.9 billion, with nights and experiences booked advancing by 9.2% during the same period.

Because of these drivers, Airbnb’s revenues rose by 18% over the year, far from the potential fears coming from investors today. Net income broke a first-quarter record of $264 million, or a 12% jump over the year. But here’s where investors can get all the benefits.

Airbnb’s free cash flow (operating cash flows minus capital expenditures) reached $1.9 billion, or a margin of 41%. Using this significant free cash flow, management bought back as much as $750 million worth of stock in the past quarter.

Share buybacks typically mean management – the true insiders – think the stock may be undervalued or has a high probability of heading higher shortly, and that’s something that markets and Wall Street analysts agree on.

Wall Street’s Take: Airbnb’s a Winner

Airbnb analysts could be conservative in their expectations of 16.8% EPS growth in the next 12 months since the company’s reported app downloads rose by 60% over the year, and the past quarter saw EPS growth of 127% alone.

Because of this wide runway ahead for the stock, markets felt comfortable bidding it up in all the important ways. Starting with price action, Airbnb stock trades at 93% of its 52-week high, suggesting bullish momentum ahead.

On a forward P/E basis, or how markets place a value today on tomorrow’s earnings, Airbnb leads the way. A multiple of 30.2x puts Airbnb at 73% above Booking’s 17.4x valuation. Airbnb is also above Trip.com’s 14.8x multiple, or a premium of roughly 104%.

Stocks trade at premium valuations for good reason, and investors can point to the company’s financials when questioned. Analysts at the Mizuho Financial Group also saw good reasons to boost Airbnb’s price targets higher, this time to $200 a share, or 26.5% higher than today’s prices.

Over the past month, despite contracting services data and an inflation-choked housing market, short interest for Airbnb stock declined by 7.4%, meaning bears won’t even act on harmful data, knowing the company’s fundamentals may rise above the current trends.

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Uber's Earnings Drop Is Investors Opportunity

On a day when the broader market managed to finish flat, if not slightly up, shares of Uber Technologies, Inc. (NYSE: UBER) dropped more than 5%. It could have been worse, with the ride-sharing Company's stock trading down almost 10% at one point before a late rally.

The catalyst for the drop was Uber's Q1 earnings report, which managed to top analyst expectations on revenue for the quarter but missed when it came to the crucial forward guidance paragraph. Whereas analysts were looking for full year gross bookings to be forecasted around $40 billion, the midpoint of Uber's $38.75 billion to $40.25 billion was below this.

Repricing of Uber Shares

While beating the consensus for past quarter performance is important, matching, if not beating, the consensus for performance in the coming quarters is even more so. This is because Wall Street is nothing if not forward-looking and prices a stock largely on the Company's expected growth.

So when Uber essentially said they expect to close less revenue than previously forecasted, the shares have to be repriced to the downside. Hence the drop. If you're an investor, this will be a tough pill to swallow, especially as it's only a few weeks since Uber was trading at all time highs.

But the 20% slide since they were set in March now threatens to turn into a proper downtrend. That being said, the second-half rally all through yesterday afternoon was interesting. While the stock still finished down on the day, an optimist might say it closed 4% higher from the low. And if the bears could not take shares down any further, does that mean the bulls are already back in control, and the light guidance has been priced in?

Considering the Opportunity in Uber

Watching how Uber shares trade through Thursday and into the weekend will be interesting. Any further momentum on the bid is likely to confirm that a recovery rally is in the works. Don't forget that Uber's revenue print for Q1 was the highest ever, while the Company's EBITDA jumped more than 80% year on year.

Perhaps even more importantly, a host of analysts reiterated their Buy rating on Uber shares in the aftermath of yesterday's report. Take Wedbush, for example, who did just that. Needham & Company, too, gave Uber shares a fresh price target of $90.

From the $66 that Uber closed at on Wednesday evening, that's pointing to a targeted upside of some 35%. If shares hit that in the coming weeks, it would also mean they'd be at a fresh all-time high and well above March's peak.

Getting Involved in Uber Stock

For those of us considering buying into this view, watch for shares to trade above yesterday's low of $64 and see if they can start to consolidate. That might mean some sideways action, but the more we see of that, the more it will suggest that the bears cannot take shares any lower as there are simply too many buyers willing to step in.

Eventually, they'll be forced to give in, yesterday's gap down will be closed, and the recovery rally that the likes of Needham are expecting will be able to materialize. It's worth noting that much of Uber's drop in the past two months coincided with the broader market dip, so with the major indices starting to recover this week, it could be perfect timing for Uber also to kick off a fresh recovery rally of its own.

              
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<div style="display: none; font-size: 1px; line-height: 1px; max-height: 0px; max-width: 0px; opacity: 0; overflow: hidden; mso-hide: all; font-family: Verdana, sans-serif;">Market Movers Uncovered:  $RBLX, $BKNG, and $UBER Analysis Awaits ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏                                                                            </div>
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<!--<![endif]--><div style="width:100%; text-align:center"><a href="https://www.marketbeat.com/stocks/NYSE/RBLX/" target="_blank" style="color:#000;width:100%; display:block; text-decoration:none;text-decoration:none!important; line-height:1.8em;"><strong>RBLX</strong> $30.66  <span class="c-red" style="color:#cc0000">(-21.45%)</span></a></div>
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<!--<![endif]--><div style="width:100%; text-align:center"><a href="https://www.marketbeat.com/stocks/NASDAQ/BKNG/" target="_blank" style="color:#000;width:100%; display:block; text-decoration:none;text-decoration:none!important; line-height:1.8em;"><strong>BKNG</strong> $3,789.32  <span class="c-green" style="color:#008000">(+3.53%)</span></a></div>
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<!--<![endif]--><div style="width:100%; text-align:center"><a href="https://www.marketbeat.com/stocks/NYSE/UBER/" target="_blank" style="color:#000;width:100%; display:block; text-decoration:none;text-decoration:none!important; line-height:1.8em;"><strong>UBER</strong> $67.88  <span class="c-green" style="color:#008000">(+2.23%)</span></a></div>
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<a class="link" style="color:#24778d;" href="https://www.marketbeat.com/scripts/redirect.aspx" target="_blank">→ Proof that the Musk/Bezos rivalry is about to hit a new level</a><br><span class="c-gray" style="font-size:0.75em;color:#231f20;"> (From InvestorPlace)</span><div style="display:table;clear:both"></div>
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<p style="Margin:0 0 10px;"><a class="image-link" href="https://www.marketbeat.com/originals/roblox-the-bottom-just-fell-out-of-the-metaverse/" target="_blank" style="display:block;width:100%;"><img src="https://www.marketbeat.com/logos/articles/small_20240509084051_roblox-the-bottom-just-fell-out-of-the-metaverse.jpg" height="400" width="600" alt="Roblox stock forecast " border="0" style="Margin: 0 auto 0.75em; display: block; max-width:100%; height:auto;"></a></p>
<h2><a class="link" href="https://www.marketbeat.com/originals/roblox-the-bottom-just-fell-out-of-the-metaverse/" target="_blank" style="color:#164f5e;text-decoration:none;">Roblox: The Bottom Just Fell Out of the Metaverse</a></h2>
<p>There were high hopes for <a href="https://www.marketbeat.com/stocks/NYSE/RBLX/" class="link" style="color:#a86528;"><strong>Roblox (NYSE: RBLX)</strong></a> going into the Q1 release, and they were shattered on the rocks of reality. The reality is that the metaverse, as neat as it sounds, just isn’t producing the accelerating growth that market participants had come to expect. The last report, Q4 2023, provided hope and pointed to much stronger results than were reported for Q1. The Q1 results aren’t bad but are far short of expectations and compounded by even weaker guidance that has <a href="https://www.marketbeat.com/originals/roblox-is-turning-a-corner-but-can-it-complete-a-reversal/" class="link" style="color:#a86528;">deflated the market</a>.</p>
<p>The upshot is that Roblox may now trade at a reasonable level. The market is down 30% from the pre-release level in pre-market trading and is still above critical support at the bottom of its trading range. The market may fall another 10% to retest the bottom, but support is expected to be as strong at this level as it has been. The risk is that RBLX shares will fall to a new low, opening the door to a deeper decline that could shave another 50% off the price. </p>
<h3>Roblox's Good Quarter Falls Far Short of Expectations</h3>
<p>Robust bookings figures from Q4 led the market to expect a significantly larger growth spurt in Q1 and 2024. The <a href="https://www.marketbeat.com/stocks/NYSE/RBLX/earnings/" class="link" style="color:#a86528;">Q1 revenue</a> of $801.3 million is up 22% compared to last year and slightly outpaced the consensus estimate but is offset by whisper numbers that were higher, weak bookings and guidance.</p>
<p>The booking miss is more profound, considering that analysts have been trimming their targets and lowered the bar during the quarter. Also, top-line growth is slowing from the high-20% range to the low-20% range and may fall into the teens by year-end. Bookings in Q1 came in at +19%, decelerating from +25% in Q4, suggesting additional slowdown should be expected. </p>
<p>The internal data is not all bad but aligns with an outlook for decelerating growth. Average daily active users and average monthly unique players grew solidly at 17% and 13%, but the growth slowed sequentially from 22% and 18%, with no pickup expected this year. Bookings growth is sequentially flat at up 6% but is offset by decelerating engagement growth. Hours are up only 2% compared to 21% in Q4 and unlikely to accelerate this year. </p>
<p>The margin news is the best, but it comes with a caveat. The company significantly improved its operating losses, cash flow, and free cash flow to drive outperformance on the bottom line but at the cost of investment. The business cut its CAPEX by 50%, which may have something to do with the quarterly results, but GAAP losses persist. </p>
<p>Guidance is among the worst news items. The company lowered its guidance for FY bookings, increased its outlook for annual losses, and provided a weak outlook for Q2, which may lead to another guidance reduction for this <a href="https://www.marketbeat.com/stocks/sectors/computer-and-technology/" class="link" style="color:#a86528;">tech stock.</a></p>
<h3>Expect Analysts to Cap Upside for Roblox</h3>
<p>Ironically, Roblox is listed among the <a href="https://www.marketbeat.com/stocks/top-rated/" class="link" style="color:#a86528;">Top Rated Stocks </a>by analysts on the Marketbeat platform. That is because the trend in <a href="https://www.marketbeat.com/stocks/NYSE/RBLX/price-target/" class="link" style="color:#a86528;">analysts' sentiment</a> has been bullish over the last twelve months, playing into the post-release disappointment felt today. Upgrades and price target revisions lifted the rating to Moderate Buy from Hold and the price target by 25%, but that trend is unlikely to continue. Investors should expect downgrades and price target reductions over the next few days and weeks. The risk now is that Roblox will remain range-bound and at the low end of its range. </p>
<p>The technical outlook could be better. The 30% discount is an attractive entry but may not lead to gains soon, if at all. Roblox is growing and building leverage but continues to struggle with growth outside of its largest demographic, nine to twelve-year-olds, and profitability is still years away. With growth slowing and analysts on track to reset the consensus outlook, the risk of a new low is high. </p>
<p><img class="aligncenter" src="https://www.marketbeat.com/logos/articles/med_20240509082019_chart-rblx-592024ver001.png" alt="RBLX stock chart " width="600" height="290" loading="lazy" style="max-width:100%;"></p>
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<!--[if true]></td></tr></table><![endif]--><p style="Margin:0 0 10px;"><a class="image-link" href="https://www.marketbeat.com/stock-ideas/airbnb-stock-plummets-after-earnings-but-is-it-a-buy/" target="_blank" style="display:block;width:100%;"><img src="https://www.marketbeat.com/logos/articles/small_20240509082027_airbnb-stock-plummets-after-earnings-but-is-it-a-b.jpg" height="400" width="600" alt="AirBnb stock forecast " border="0" style="Margin: 0 auto 0.75em; display: block; max-width:100%; height:auto;"></a></p>
<h2><a class="link" href="https://www.marketbeat.com/stock-ideas/airbnb-stock-plummets-after-earnings-but-is-it-a-buy/" target="_blank" style="color:#164f5e;text-decoration:none;">Airbnb Stock Plummets After Earnings, But is It a Buy?</a></h2>
<p>First-quarter earnings are arguably the most important reports for any stock to release, as they set the tone for the rest of the year and give investors insight into their current—and potential—holdings. After reporting its own set of first-quarter 2024 results, shares of <strong><a href="https://www.marketbeat.com/stocks/NASDAQ/ABNB/" class="link" style="color:#a86528;">Airbnb Inc. (NASDAQ: ABNB)</a></strong> fell by 8.5% on what could be the wrong conclusions coming from the market.</p>
<p>After digesting what happened within the company’s financials, investors could renew their hopes to see Airbnb stock return to its former glory and even make potentially new all-time high prices. Markets and analysts give investors enough evidence to believe in Airbnb’s bullish potential, but that’s not all. </p>
<p>Compared to peers like <strong><a href="https://www.marketbeat.com/stocks/NASDAQ/BKNG/" class="link" style="color:#a86528;">Booking Holdings Inc. (NASDAQ: BKNG)</a></strong> and <strong><a href="https://www.marketbeat.com/stocks/NASDAQ/TCOM/" class="link" style="color:#a86528;">Trip.com Group Limited Inc. (NASDAQ: TCOM)</a></strong>, Airbnb holds the most market attention for good fundamental reason. Investors could soon realize that the price reaction is more part of a broader economic worry within the <a href="https://www.marketbeat.com/stocks/sectors/consumer-discretionary/" class="link" style="color:#a86528;">consumer discretionary sector</a>. </p>
<h3><strong>Understanding Investor Worries</strong></h3>
<p>After expanding month after month since 2020, the ISM <a href="https://ecommerce.ismworld.org/SSO/Login.aspx" class="link" style="color:#a86528;">services PMI</a> index has fallen into a contraction, according to its latest reading for April 2024. Because discretionary spending and services stocks like Airbnb fall into this category, investors may have gotten slightly spooked. </p>
<p>Nothing wrong with taking profits – if there are any -though investors should consider if they can stomach the realization of how many percentage points of upside they potentially left on the table. </p>
<p>The services sector isn’t the only one contracting; <a href="https://www.marketbeat.com/stocks/sectors/manufacturing/" class="link" style="color:#a86528;">manufacturing businesses</a> have also been contracting for over 15 months. Because of this, the Federal Reserve (the Fed) may consider cutting interest rates sooner rather than later, even with stubbornly high inflation rates. </p>
<p>Rate cuts could push consumer discretionary spending toward Airbnb, as it is directly tied to domestic and international travel budgets. At the same time, even if the Fed doesn’t cut rates, <a href="https://www.bloomberg.com/tosv2.html" class="link" style="color:#a86528;">rent inflation is reported</a> to be one of the main drivers of the sticky U.S. inflation rates experienced today. </p>
<p>Because consumers – in their right minds – won’t lock in leases at record high rates, nor are they looking to finance a new home at 7.5% mortgages and an average home price that is now <a href="https://fred.stlouisfed.org/series/ASPUS" class="link" style="color:#a86528;">32% higher than pre-pandemic prices</a>, Airbnb also becomes a solution for those looking to weather the housing inflation storm. </p>
<h3><strong>Airbnb’s Fundamentals Show </strong></h3>
<p>The company’s key performance indicators (KPIs), such as gross booking value and nights and experiences booked, rose by attractive rates over the year. </p>
<p>According to <a href="https://airbnb2020ipo.q4web.com/files/doc_financials/2024/q1/Airbnb_Q1-2024-Shareholder-Letter_Final-1.pdf" class="link" style="color:#a86528;">management’s shareholder letter</a>, gross bookings jumped by 12% to reach $22.9 billion, with nights and experiences booked advancing by 9.2% during the same period. </p>
<p>Because of these drivers, Airbnb’s revenues rose by 18% over the year, far from the potential fears coming from investors today. Net income broke a first-quarter record of $264 million, or a 12% jump over the year. But here’s where investors can get all the benefits.</p>
<p>Airbnb’s free cash flow (operating cash flows minus capital expenditures) reached $1.9 billion, or a margin of 41%. Using this significant free cash flow, management bought back as much as $750 million worth of stock in the past quarter. </p>
<p>Share buybacks typically mean management – the true insiders – think the stock may be undervalued or has a high probability of heading higher shortly, and that’s something that markets and Wall Street analysts agree on. </p>
<h3><strong>Wall Street’s Take: Airbnb’s a Winner</strong></h3>
<p>Airbnb analysts could be conservative in their expectations of <a href="https://www.marketbeat.com/stocks/NASDAQ/ABNB/earnings/" class="link" style="color:#a86528;">16.8% EPS growth</a> in the next 12 months since the company’s reported app downloads rose by 60% over the year, and the past quarter saw EPS growth of 127% alone. </p>
<p>Because of this wide runway ahead for the stock, markets felt comfortable bidding it up in all the important ways. Starting with price action, Airbnb stock trades at <a href="https://www.marketbeat.com/stocks/NASDAQ/ABNB/chart/" class="link" style="color:#a86528;">93% of its 52-week high</a>, suggesting bullish momentum ahead. </p>
<p>On a forward P/E basis, or how markets place a value today on tomorrow’s earnings, Airbnb leads the way. A multiple of 30.2x puts Airbnb at 73% above Booking’s 17.4x valuation. Airbnb is also above Trip.com’s 14.8x multiple, or a premium of roughly 104%. </p>
<p>Stocks trade at premium valuations for good reason, and investors can point to the <a href="https://www.marketbeat.com/stocks/NASDAQ/ABNB/financials/" class="link" style="color:#a86528;">company’s financials</a> when questioned. Analysts at the Mizuho Financial Group also saw good reasons to boost Airbnb’s price targets higher, <a href="https://www.marketbeat.com/stocks/NASDAQ/ABNB/price-target/" class="link" style="color:#a86528;">this time to $200 a share</a>, or 26.5% higher than today’s prices. </p>
<p>Over the past month, despite contracting services data and an inflation-choked housing market, short interest for Airbnb stock <a href="https://www.marketbeat.com/stocks/NASDAQ/ABNB/short-interest/" class="link" style="color:#a86528;">declined by 7.4%</a>, meaning bears won’t even act on harmful data, knowing the company’s fundamentals may rise above the current trends.</p>
<p> </p>
<p> </p>
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<strong>Ad</strong>   Stansberry Research</div>
<h2 style="font-size:28px; line-height:35px;"><a class="link" style="text-decoration:underline; font-family: 'Lato', Tahoma, Helvetica, sans-serif;color:#000;mso-line-height-rule:exactly;font-size:28px; line-height:35px;" href="https://www.marketbeat.com/scripts/redirect.aspx" target="_blank">Get Out of the Dollar Before May 15</a></h2>
<p style="margin: 0 0 20px; mso-table-lspace:0;mso-table-rspace:0;">Get Out of the Dollar Before May 15
<br><br>
A Wall Street legend and our friend has just warned 896,000 Americans to prepare for May 15.</p>
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<!--[if true]></td></tr></table><![endif]--><p style="Margin:0 0 10px;"><a class="image-link" href="https://www.marketbeat.com/stock-ideas/ubers-earnings-drop-is-investors-opportunity/" target="_blank" style="display:block;width:100%;"><img src="https://www.marketbeat.com/logos/articles/small_20240509081618_ubers-earnings-drop-is-investors-opportunity.jpg" height="401" width="600" alt="Uber driver holding smartphone in car" border="0" style="Margin: 0 auto 0.75em; display: block; max-width:100%; height:auto;"></a></p>
<h2><a class="link" href="https://www.marketbeat.com/stock-ideas/ubers-earnings-drop-is-investors-opportunity/" target="_blank" style="color:#164f5e;text-decoration:none;">Uber's Earnings Drop Is Investors Opportunity</a></h2>
<p>On a day when the broader market managed to finish flat, if not slightly up, shares of <strong><a href="https://www.marketbeat.com/stocks/NYSE/UBER/" target="_blank" rel="noopener" class="link" style="color:#a86528;">Uber Technologies, Inc. (NYSE: UBER)</a></strong> dropped more than 5%. It could have been worse, with the ride-sharing Company's stock trading <a href="https://www.marketbeat.com/stocks/NYSE/UBER/chart/" target="_blank" rel="noopener" class="link" style="color:#a86528;">down almost 10%</a> at one point before a late rally. </p>
<p>The catalyst for the drop was Uber's <a href="https://www.marketbeat.com/stocks/NYSE/UBER/earnings/" target="_blank" rel="noopener" class="link" style="color:#a86528;">Q1 earnings report</a>, which managed to top analyst expectations on revenue for the quarter but missed when it came to the crucial forward guidance paragraph. Whereas analysts were looking for full year gross bookings to be forecasted around $40 billion, the midpoint of Uber's $38.75 billion to $40.25 billion was below this. </p>
<h3>Repricing of Uber Shares</h3>
<p>While beating the consensus for past quarter performance is important, matching, if not beating, the consensus for performance in the coming quarters is even more so. This is because Wall Street is nothing if not forward-looking and prices a stock largely on the Company's expected growth. </p>
<p>So when Uber essentially said they expect to close less revenue than previously forecasted, the shares <a href="https://www.marketbeat.com/stock-ideas/lucids-stock-price-is-still-in-reverse-new-lows-are-coming/" target="_blank" rel="noopener" class="link" style="color:#a86528;">have to be repriced</a> to the downside. Hence the drop. If you're an investor, this will be a tough pill to swallow, especially as it's only a few weeks since Uber was trading at all time highs. </p>
<p>But the 20% slide since they were set in March now threatens to turn <a href="https://www.marketbeat.com/stocks/sectors/computer-and-technology/" target="_blank" rel="noopener" class="link" style="color:#a86528;">into a proper downtrend</a>. That being said, the second-half rally all through yesterday afternoon was interesting. While the stock still finished down on the day, an optimist might say it closed 4% higher from the low. And if the bears could not take shares down any further, does that mean the bulls are already back in control, and the light guidance has been priced in? </p>
<h3>Considering the Opportunity in Uber</h3>
<p>Watching how Uber shares trade through Thursday and into the weekend will be interesting. Any further momentum on the bid is likely to confirm that a recovery rally is in the works. Don't forget that Uber's revenue print for Q1 was the highest ever, while the Company's EBITDA jumped more than 80% year on year. </p>
<p>Perhaps even more importantly, a host of analysts reiterated their Buy rating on Uber shares in the aftermath of yesterday's report. Take Wedbush, for example, who did just that. Needham &amp; Company, too, gave Uber shares <a href="https://www.marketbeat.com/stocks/NYSE/UBER/price-target/" target="_blank" rel="noopener" class="link" style="color:#a86528;">a fresh price target</a> of $90. </p>
<p>From the $66 that Uber closed at on Wednesday evening, that's pointing to a targeted upside of some 35%. If shares hit that in the coming weeks, it would also mean they'd be at a fresh all-time high and well above March's peak.</p>
<p></p>
<h3>Getting Involved in Uber Stock </h3>
<p>For those of us considering buying into this view, watch for shares to trade above yesterday's low of $64 and see if they can start to consolidate. That might mean some sideways action, but the more we see of that, the more it will suggest that the bears cannot take shares any lower as there are simply too many buyers willing to step in. </p>
<p>Eventually, they'll be forced to give in, yesterday's gap down will be closed, and the recovery rally that the likes of Needham are expecting will be able to materialize. It's worth noting that much of Uber's drop in the past two months coincided with the broader market dip, so with the major indices starting to recover this week, it could be perfect timing for Uber also to kick off a fresh recovery rally of its own. </p>
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Ticker Report Market-Moving Headlines for May 9, 2024 | Ticker Report
Market Movers Uncovered: $RBLX, $BKNG, and $UBER Analysis Awaits ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ Unsubscribe (https://www.tickerreport.com/unsubscribe/?userid=11543022&emailhash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483)
Ticker Reports for May 9 th RBLX $30.66 (-21.45%) BKNG $3,789.32 (+3.53%) UBER $67.88 (+2.23%) → Proof that the Musk/Bezos rivalry is about to hit a new level (https://www.marketbeat.com/scripts/redirect.aspx?SponsorshipID=77490&UserID=11543022&interstitial=1)
(From InvestorPlace) Roblox: The Bottom Just Fell Out of the Metaverse (https://www.marketbeat.com/originals/roblox-the-bottom-just-fell-out-of-the-metaverse/)
There were high hopes for going into the Q1 release, and they were shattered on the rocks of reality. The reality is that the metaverse, as neat as it sounds, just isn’t producing the accelerating growth that market participants had come to expect. The last report, Q4 2023, provided hope and pointed to much stronger results than were reported for Q1. The Q1 results aren’t bad but are far short of expectations and compounded by even weaker guidance that has (https://www.marketbeat.com/stocks/NYSE/RBLX/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) Roblox (NYSE: RBLX) deflated the market. (https://www.marketbeat.com/originals/roblox-is-turning-a-corner-but-can-it-complete-a-reversal/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
The upshot is that Roblox may now trade at a reasonable level. The market is down 30% from the pre-release level in pre-market trading and is still above critical support at the bottom of its trading range. The market may fall another 10% to retest the bottom, but support is expected to be as strong at this level as it has been. The risk is that RBLX shares will fall to a new low, opening the door to a deeper decline that could shave another 50% off the price.
Roblox's Good Quarter Falls Far Short of Expectations
Robust bookings figures from Q4 led the market to expect a significantly larger growth spurt in Q1 and 2024. The Q1 revenue of $801.3 million is up 22% compared to last year and slightly outpaced the consensus estimate but is offset by whisper numbers that were higher, weak bookings and guidance. (https://www.marketbeat.com/stocks/NYSE/RBLX/earnings/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
The booking miss is more profound, considering that analysts have been trimming their targets and lowered the bar during the quarter. Also, top-line growth is slowing from the high-20% range to the low-20% range and may fall into the teens by year-end. Bookings in Q1 came in at +19%, decelerating from +25% in Q4, suggesting additional slowdown should be expected.
The internal data is not all bad but aligns with an outlook for decelerating growth. Average daily active users and average monthly unique players grew solidly at 17% and 13%, but the growth slowed sequentially from 22% and 18%, with no pickup expected this year. Bookings growth is sequentially flat at up 6% but is offset by decelerating engagement growth. Hours are up only 2% compared to 21% in Q4 and unlikely to accelerate this year.
The margin news is the best, but it comes with a caveat. The company significantly improved its operating losses, cash flow, and free cash flow to drive outperformance on the bottom line but at the cost of investment. The business cut its CAPEX by 50%, which may have something to do with the quarterly results, but GAAP losses persist.
Guidance is among the worst news items. The company lowered its guidance for FY bookings, increased its outlook for annual losses, and provided a weak outlook for Q2, which may lead to another guidance reduction for this tech stock. (https://www.marketbeat.com/stocks/sectors/computer-and-technology/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Expect Analysts to Cap Upside for Roblox
Ironically, Roblox is listed among the Top Rated Stocks by analysts on the Marketbeat platform. That is because the trend in (https://www.marketbeat.com/stocks/top-rated/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) analysts' sentiment has been bullish over the last twelve months, playing into the post-release disappointment felt today. Upgrades and price target revisions lifted the rating to Moderate Buy from Hold and the price target by 25%, but that trend is unlikely to continue. Investors should expect downgrades and price target reductions over the next few days and weeks. The risk now is that Roblox will remain range-bound and at the low end of its range. (https://www.marketbeat.com/stocks/NYSE/RBLX/price-target/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
The technical outlook could be better. The 30% discount is an attractive entry but may not lead to gains soon, if at all. Roblox is growing and building leverage but continues to struggle with growth outside of its largest demographic, nine to twelve-year-olds, and profitability is still years away. With growth slowing and analysts on track to reset the consensus outlook, the risk of a new low is high. Ad TradingTips 5 stocks that can double in 2024 (https://www.marketbeat.com/scripts/redirect.aspx?SponsorshipID=77491&UserID=11543022&interstitial=1&Hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483)
You still have time to access the 5 Stocks that Can Double in 2024 report for free. Download your free report today! Airbnb Stock Plummets After Earnings, But is It a Buy? (https://www.marketbeat.com/stock-ideas/airbnb-stock-plummets-after-earnings-but-is-it-a-buy/)
First-quarter earnings are arguably the most important reports for any stock to release, as they set the tone for the rest of the year and give investors insight into their current—and potential—holdings. After reporting its own set of first-quarter 2024 results, shares of fell by 8.5% on what could be the wrong conclusions coming from the market. Airbnb Inc. (NASDAQ: ABNB) (https://www.marketbeat.com/stocks/NASDAQ/ABNB/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
After digesting what happened within the company’s financials, investors could renew their hopes to see Airbnb stock return to its former glory and even make potentially new all-time high prices. Markets and analysts give investors enough evidence to believe in Airbnb’s bullish potential, but that’s not all.
Compared to peers like and Booking Holdings Inc. (NASDAQ: BKNG) (https://www.marketbeat.com/stocks/NASDAQ/BKNG/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) , Airbnb holds the most market attention for good fundamental reason. Investors could soon realize that the price reaction is more part of a broader economic worry within the Trip.com Group Limited Inc. (NASDAQ: TCOM) (https://www.marketbeat.com/stocks/NASDAQ/TCOM/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) consumer discretionary sector. (https://www.marketbeat.com/stocks/sectors/consumer-discretionary/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) Understanding Investor Worries
After expanding month after month since 2020, the ISM services PMI index has fallen into a contraction, according to its latest reading for April 2024. Because discretionary spending and services stocks like Airbnb fall into this category, investors may have gotten slightly spooked. (https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/services/april/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Nothing wrong with taking profits – if there are any -though investors should consider if they can stomach the realization of how many percentage points of upside they potentially left on the table.
The services sector isn’t the only one contracting; manufacturing businesses have also been contracting for over 15 months. Because of this, the Federal Reserve (the Fed) may consider cutting interest rates sooner rather than later, even with stubbornly high inflation rates. (https://www.marketbeat.com/stocks/sectors/manufacturing/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Rate cuts could push consumer discretionary spending toward Airbnb, as it is directly tied to domestic and international travel budgets. At the same time, even if the Fed doesn’t cut rates, rent inflation is reported to be one of the main drivers of the sticky U.S. inflation rates experienced today. (https://www.bloomberg.com/news/articles/2024-04-18/us-rent-inflation-looms-over-potential-interest-rate-cut?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Because consumers – in their right minds – won’t lock in leases at record high rates, nor are they looking to finance a new home at 7.5% mortgages and an average home price that is now 32% higher than pre-pandemic prices, Airbnb also becomes a solution for those looking to weather the housing inflation storm. (https://fred.stlouisfed.org/series/ASPUS?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) Airbnb’s Fundamentals Show
The company’s key performance indicators (KPIs), such as gross booking value and nights and experiences booked, rose by attractive rates over the year.
According to management’s shareholder letter, gross bookings jumped by 12% to reach $22.9 billion, with nights and experiences booked advancing by 9.2% during the same period. (https://airbnb2020ipo.q4web.com/files/doc_financials/2024/q1/Airbnb_Q1-2024-Shareholder-Letter_Final-1.pdf?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Because of these drivers, Airbnb’s revenues rose by 18% over the year, far from the potential fears coming from investors today. Net income broke a first-quarter record of $264 million, or a 12% jump over the year. But here’s where investors can get all the benefits.
Airbnb’s free cash flow (operating cash flows minus capital expenditures) reached $1.9 billion, or a margin of 41%. Using this significant free cash flow, management bought back as much as $750 million worth of stock in the past quarter.
Share buybacks typically mean management – the true insiders – think the stock may be undervalued or has a high probability of heading higher shortly, and that’s something that markets and Wall Street analysts agree on. Wall Street’s Take: Airbnb’s a Winner
Airbnb analysts could be conservative in their expectations of 16.8% EPS growth in the next 12 months since the company’s reported app downloads rose by 60% over the year, and the past quarter saw EPS growth of 127% alone. (https://www.marketbeat.com/stocks/NASDAQ/ABNB/earnings/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Because of this wide runway ahead for the stock, markets felt comfortable bidding it up in all the important ways. Starting with price action, Airbnb stock trades at 93% of its 52-week high, suggesting bullish momentum ahead. (https://www.marketbeat.com/stocks/NASDAQ/ABNB/chart/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
On a forward P/E basis, or how markets place a value today on tomorrow’s earnings, Airbnb leads the way. A multiple of 30.2x puts Airbnb at 73% above Booking’s 17.4x valuation. Airbnb is also above Trip.com’s 14.8x multiple, or a premium of roughly 104%.
Stocks trade at premium valuations for good reason, and investors can point to the company’s financials when questioned. Analysts at the Mizuho Financial Group also saw good reasons to boost Airbnb’s price targets higher, (https://www.marketbeat.com/stocks/NASDAQ/ABNB/financials/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) this time to $200 a share, or 26.5% higher than today’s prices. (https://www.marketbeat.com/stocks/NASDAQ/ABNB/price-target/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Over the past month, despite contracting services data and an inflation-choked housing market, short interest for Airbnb stock declined by 7.4%, meaning bears won’t even act on harmful data, knowing the company’s fundamentals may rise above the current trends. (https://www.marketbeat.com/stocks/NASDAQ/ABNB/short-interest/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
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Get Out of the Dollar Before May 15

A Wall Street legend and our friend has just warned 896,000 Americans to prepare for May 15. This could be your solution. Uber's Earnings Drop Is Investors Opportunity (https://www.marketbeat.com/stock-ideas/ubers-earnings-drop-is-investors-opportunity/)
On a day when the broader market managed to finish flat, if not slightly up, shares of dropped more than 5%. It could have been worse, with the ride-sharing Company's stock trading Uber Technologies, Inc. (NYSE: UBER) (https://www.marketbeat.com/stocks/NYSE/UBER/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick) down almost 10% at one point before a late rally. (https://www.marketbeat.com/stocks/NYSE/UBER/chart/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
The catalyst for the drop was Uber's Q1 earnings report, which managed to top analyst expectations on revenue for the quarter but missed when it came to the crucial forward guidance paragraph. Whereas analysts were looking for full year gross bookings to be forecasted around $40 billion, the midpoint of Uber's $38.75 billion to $40.25 billion was below this. (https://www.marketbeat.com/stocks/NYSE/UBER/earnings/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Repricing of Uber Shares
While beating the consensus for past quarter performance is important, matching, if not beating, the consensus for performance in the coming quarters is even more so. This is because Wall Street is nothing if not forward-looking and prices a stock largely on the Company's expected growth.
So when Uber essentially said they expect to close less revenue than previously forecasted, the shares have to be repriced to the downside. Hence the drop. If you're an investor, this will be a tough pill to swallow, especially as it's only a few weeks since Uber was trading at all time highs. (https://www.marketbeat.com/stock-ideas/lucids-stock-price-is-still-in-reverse-new-lows-are-coming/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
But the 20% slide since they were set in March now threatens to turn into a proper downtrend. That being said, the second-half rally all through yesterday afternoon was interesting. While the stock still finished down on the day, an optimist might say it closed 4% higher from the low. And if the bears could not take shares down any further, does that mean the bulls are already back in control, and the light guidance has been priced in? (https://www.marketbeat.com/stocks/sectors/computer-and-technology/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
Considering the Opportunity in Uber
Watching how Uber shares trade through Thursday and into the weekend will be interesting. Any further momentum on the bid is likely to confirm that a recovery rally is in the works. Don't forget that Uber's revenue print for Q1 was the highest ever, while the Company's EBITDA jumped more than 80% year on year.
Perhaps even more importantly, a host of analysts reiterated their Buy rating on Uber shares in the aftermath of yesterday's report. Take Wedbush, for example, who did just that. Needham & Company, too, gave Uber shares a fresh price target of $90. (https://www.marketbeat.com/stocks/NYSE/UBER/price-target/?AccountID=11543022&hash=91CD52924318C17060E3BA96B34C2CCD480BC29B7305E09E8AAF16EE355845BAF84803196401E46929DDEBB47D3561CC12D2E6885BA1A620EDB33261FE0F0483&utm_source=newsletter&utm_medium=email&utm_campaign=newsletterclick)
From the $66 that Uber closed at on Wednesday evening, that's pointing to a targeted upside of some 35%. If shares hit that in the coming weeks, it would also mean they'd be at a fresh all-time high and well above March's peak.
Getting Involved in Uber Stock
For those of us considering buying into this view, watch for shares to trade above yesterday's low of $64 and see if they can start to consolidate. That might mean some sideways action, but the more we see of that, the more it will suggest that the bears cannot take shares any lower as there are simply too many buyers willing to step in.
Eventually, they'll be forced to give in, yesterday's gap down will be closed, and the recovery rally that the likes of Needham are expecting will be able to materialize. It's worth noting that much of Uber's drop in the past two months coincided with the broader market dip, so with the major indices starting to recover this week, it could be perfect timing for Uber also to kick off a fresh recovery rally of its own.
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Subject Line: 🌟 Roblox: The Bottom Just Fell Out of the Metaverse
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🌟 Roblox: The Bottom Just Fell Out of the Metaverse

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Roblox: The Bottom Just Fell Out of the Metaverse