Roblox Corp RBLX shares fell by 4.01% to $34.49 during Tuesday's trading session. Shares of streaming and tech companies at large were trading lower as stocks pulled back following last week's rebound. Growth stocks have experienced weakness this year amid Fed policy tightening measures.
Shares of growth stocks have been volatile in the month of June amid an overall market selloff partially generated by worse-than-expected U.S. May inflation data. The all items index CPI datapoint increased 8.6 percent for the 12 months ending May, the largest 12-month increase since the period ending December 1981.
Inflation concerns have weighed on the economic outlook and have also raised expectations for further Fed rate hikes. A rise in treasury yields has also weighed on tech and growth stock valuations.
The rise in U.S. Treasury yields hinders growth companies such that, when interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
See Also: Why Endo International Stock Is Soaring Today
According to data from Benzinga Pro, Roblox has a 52-week high of $141.60 and a 52-week low of $21.65.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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