Simpler Trading's Danielle Shay Says Roblox Is 'Crack For Kids'

Danielle Shay, director of options at Simpler Trading,  discussed trading Roblox Corp RBLX Friday on CNBC's "Trading Nation."

Roblox is essentially "crack for kids," Shay said.

Although she noted that the company's business model is a little bit questionable, it's very lucrative.

Upcoming Earnings: Roblox is scheduled to report first-quarter financial results on May 10. 

Shay expects the stock to move about $8 one way or the other after the company reports earnings. If it pulls back, Shay would be a buyer of the stock, she told CNBC. 

Recent Analyst Rating: JPMorgan initiated coverage of Roblox on Tuesday with an Overweight rating and a price target of $85.

Related Link: Benzinga's Top Ratings Upgrades, Downgrades For May 4, 2021

RBLX Price Action: Roblox made its market debut on March 10. Since that time, the stock has traded as high as $83.41 and as low as $60.50. At market close Friday, shares were up 4.37% at $67.65. 

(Photo courtesy of Roblox.) 

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Posted In: InitiationAnalyst RatingsTrading IdeasCNBCDanielle ShayTrading Nation
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