Piper ‘little surprised’ by weaker than expected Roblox metrics

Piper Sandler analyst Thomas Champion says Roblox’s November metrics releases this morning were generally below expectations. The company’s daily active users and bookings missed Piper’s estimates by 5%, Champion tells investors in a research note. The analyst is a "little surprised" as he thought Roblox could benefit from more students in the U.S. being home amid the worsening flu season. But, there might also be "some noise" in the year-ago period after Squid Games and there is also one less day in November than October, writes Champion. He continues to see a long-term opportunity for the company driven by daily active user growth, monetization upside to peers, and advertising as a catalyst in 2023. Champion reiterates an Overweight rating on the shares with a $50 price target. The stock in midday trading is down 17% to $27.52.