Sam Boughedda

Investing.com — Roblox Corp (NYSE:) stock is down Wednesday after Morgan Stanley slashed its price target on the stock to $32 from $65, keeping an Equal Weight rating on the shares.

Brian Nowak, an analyst for the firm, stated that they still see negative revisions in the future and think a return of North America user growth will be required to increase the company’s outlook to 2022. This will also help to ensure the investors are paying.

We believe RBLX’s FYTD results reflect larger-than-expected headwinds, forward growth uncertainty and reopening. Average February results These challenges were reinforced by the fact that bookings per DAU fell 25% y/y, and 8% sequentially. Nowak stated that they expect slower growth to continue through 2H22.

Analysts expect that this year will remain an investment year. They’ll start to see positive signs if there is evidence of innovative-driven engagement or monetization faster than they expected.

Roblox stock fell 3.59% Wednesday