Abercrombie, Snap's Downward Guidance Revisions Trigger Doubts Over Roblox's Prospects, Says KeyBanc

KeyBanc analyst Tyler Parker revisited the Roblox Corp RBLX story ahead of the May metrics report expected on June 15.
The revisit followed negative guidance revisions for both Abercrombie & Fitch Co ANF and Snap Inc SNAP in recent weeks. Both companies focused on a demo skewing toward Gen Z.
Looking at Alphabet Inc GOOG GOOGL Google Trends searches with relevant correlations, Parker believed May bookings were at risk of coming in weaker-than-expected.
Recent trends reinforced the idea that Parker needed to see evidence of a reacceleration in the numbers before underwriting it with confidence.
Parker said the new monetization initiatives outlined last quarter were encouraging. However, the most meaningful initiative, advertising, remained more in the midterm.
Parker acknowledged growing concerns that Snap's recent disappointing quarterly report and outlook did not bode well for Roblox.
The disappointing outlook triggered concerns over signs of pressure on the discretionary income of younger demographics relevant to Roblox.
Parker remained Sector Weight.
Price Action: RBLX shares traded higher by 5.66% at $33.26 on the last check Wednesday.

Analyst Calendar