TSX jumps amid Fed rate cut hopes, ongoing U.S. government shutdown
Investing.com -- Shares of Roblox Corp. (NYSE:RBLX) declined 4% Friday morning as investors reacted to concerns about decelerating growth in the company’s core markets.
M Science analyst Corey Barrett highlighted that while platform Daily Active User (DAU) growth remains strong globally in September, bookings growth has "decelerated sharply from recent highs in the U.S. and to a lesser extent in core European markets." Barrett noted that U.S. bookings growth likely slowed to the low-30% range YoY in September, down from mid-to-high 40% in August and mid-to-high 50% in July.
The analyst attributed the lower growth rates in the U.S. and Europe to a "rationalization of growth in more mature markets associated with back-to-school." Despite this slowdown in core markets, Barrett pointed out that bookings growth in non-core markets (excluding U.S. and Western Europe) remains at or near recent highs.
The report also indicated acceleration in mobile DAU growth across all regions from the second quarter to the third quarter, though September growth was only in the low single digits in the U.S. and Asia-Pacific regions. Meanwhile, growth continues to set new highs in Europe and Rest of World markets.
While overall bookings growth remains "objectively strong" according to Barrett, the deceleration in core markets appears to be more significant than many investors anticipated based on global engagement metrics.