Based on historical financial data and last quarter reporting, and news reports, do you feel that ROBLOX sick will increase or decrease after earnings report tomorrow

**Roblox's stock price is likely to face downward pressure after the earnings report tomorrow**, August 1, 2024. Here's the analysis to support this conclusion: 1. **Recent Financial Performance**: Roblox reported a net loss of $271.92 million and a diluted EPS of -$0.43 for the quarter ending March 31, 2024. This indicates that the company is currently unprofitable. |Ticker|Name|Total Revenue|Net Income|Diluted EPS|Date|code|market_code| |---|---|---|---|---|---|---|---| |RBLX.N|Roblox|8.013E8|-2.7192E8|-0.43|2024 Q1|RBLX|169| 2. **Growth Rates**: The company's net income has seen a year-on-year decline of 0.73% and total revenue has increased by 22.27% year-on-year. While revenue growth is positive, the lack of profitability and the negative net income growth rate are concerning signs. |Ticker|Name|Net Income year-on-year growth rate|Total Revenue year-on-year growth rate|Diluted EPS QoQ growth rate|Date|code|market_code| |---|---|---|---|---|---|---|---| |RBLX.N|Roblox|-0.730511061389601|22.271661905808244||20240331|RBLX|169| 3. **Analyst Expectations**: Analysts have forecasted an EPS of -$0.39 for the upcoming quarter, which is slightly better than the previous quarter's -$0.43. However, the fact that the company is still expected to report a loss suggests that the market has low expectations for the near-term performance. |Ticker|Name|Estimate EPS|Estimate Revenue|Date|code|market_code| |---|---|---|---|---|---|---| |RBLX.N|Roblox|-0.39|8.9847E8|20240630|RBLX|169| 4. **Stock Price Reaction to Earnings**: Historically, Roblox's stock has experienced significant volatility following earnings reports. For example, after the previous earnings report, the stock price decreased by 22.06%. This suggests that the market is sensitive to the company's financial performance and may react negatively to a report that does not meet expectations. 5. **Class Action Lawsuit**: There is a pending class action lawsuit against Roblox for alleged securities fraud, which could further negatively impact investor sentiment. 6. **Analyst Ratings and Price Targets**: Despite the negative financials, some analysts have reiterated a "Moderate Buy" rating with an average target price of $42.59. However, these ratings may not fully account for the current financial health of the company and the pending legal issues. In conclusion, while there is some optimism about future revenue growth, the current lack of profitability, the negative net income growth, and the pending legal challenges suggest that Roblox's stock price may face downward pressure after the earnings report. Investors should closely monitor the company's guidance for the upcoming quarters and the management's outlook for any signs of improvement that could mitigate the negative sentiment.