Morgan Stanley analysts recently issued a research report, downgrading the Metaverse concept stock Roblox (NYSE: RBLX) from equal weight to underweight, and lowering the target price from $27.5 to $24, citing slower growth in the second half of the year. , there is little room for advertising growth in the short term.
Analysts emphasized that Roblox's user activity report in December last year was stronger than expected, boosting the stock price by 28% so far this year, and this increase means that expectations for a re-acceleration of growth in the first half of 2023 have now been fully priced in.
Morgan Stanley said it now only sees mixed prospects for the company, noting that starting in May 2023, competition will actually become more intense, and we expect a significant year-on-year slowdown starting in the third quarter of 2023.
Analysts mentioned the advertising revenue outlook, noting that while the market remains focused on advertising as a key growth driver...we expect the acceleration to be slow and the financial impact to be limited in the near term.
Taking all the above factors into consideration, Morgan Stanley believes that the risk-return ratio of Roblox stock has turned negative. Roblox closed down 6.57% on Thursday (19th) and rose 0.99% before the market today (20th). (Financial World) #dyor, #SHIB, #NFT
