Today has been a rough day for social media stocks following a poor earnings report from Snap, Inc. (NYSE:RBLX).
Why Is It Moving?
Snap reported worse-than-expected Q2 results, announced a reduction in its hiring rate and refrained from providing guidance. The stock fell over 38.7%, which has pressured companies in the broader social media and gaming space.
What Else?
Shares of social media, gaming and growth stocks have also fallen this year amid broader economic concerns. As inflation rises and recession fears mount, consumers may be more likely to only spend money on essentials, which has driven a rotation out of discretionary sectors.
Roblox operates an online video game platform that lets young gamers create, develop, and monetize games (or "experiences") for other players. Roblox makes money from ad revenue and in-game purchases known as Robux.
The company is set to report quarter-two earnings on August 8th.
Price Target: Shares are down 5.80% at $39.48, according to Benzinga Pro.
Photo: Courtesy of The Focal Project on flickr
