October brings us a couple potential opportunities. One involves a company that doesn't get much attention on here, while the other is one of the more popular stocks in the community. Both companies are scheduled to report Q3 earnings toward the end of the month, which could present opportunities with options premiums and volatility picking up ahead of their earnings announcements. Roblox $RBLX has had a rough year down about 40% for the year. The platform is still growing but they have had issues and some serious allegations around child safety and people targeting children. The business has also shown it is still growing user base and revenue but average spending per paying user has been declining. Heading into the quarterly earnings Oct 29th the option market is pricing in an expected move of close to 18% giving a price range of about $39 -$56 With shares already down 40%, is the bad news priced in, or could earnings trigger another significant selloff? SOFI $SOFI another beaten down stock but one of the more popular stocks on here is set to report Q3 earnings Oct 27th. Down about 42% year to date this bank has been trading in the $15.00 range since March of this year after a fairly big sell off to start the year. Unlike Roblox, SoFi has continued delivering strong member and revenue growth, along with improving profitability. The option market is pricing a move of about 11% giving a price range of about $14 - $17.50. Despite its share price declining dramatically, the company's revenue and earnings have continued to grow. Could higher interest rates put further pressure on the price of the stock, or has the market already priced in those concerns? Is anyone looking at these two companies accumulating shares or perhaps making an options play on either of these?
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4 Comments
Clantosa
@clantosa · 11d
I wouldn't touch roblox. Even though it's popular and all the kids at the school here are playing it the child abuse allegations by players and corporate staff is a huge hit clearly that might ruin them. And just the nature of roblox is a perfect breeding ground for pedophiles. If you want to invest in gaming then look at Nintendo or something else forget roblox
Collin @wallstreetwannabe · 11d
Roblox has NEVER been profitable and has shown absolutely no signs of becoming profitable. As a younger person that uses the platform, I’m seeing more and more people quit over bad updates that stem from these child predator allegations (the reason the overall player base has increased is due largely to bots which further harm their ecosystem).To get the moderation required to fix this issue it would cost them even more money, pushing them even further underwater. sure I’ll continue using it and I’m not gonna deny the moat it has but I don’t think I would ever consider investing in it.
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