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Why Roblox Stock Popped Wednesday
Online gaming stock Roblox (NYSE: RBLX) bounced back from a two-day sell-off on Wednesday, closing the day up 8.2% — not quite enough to erase the losses earlier in the week, but at least lessening the pain somewhat. Oh, sure, some analysts will tell you that growth stocks sold off this week because investors got spooked over the risk of rising interest rates in the U.S. Since Friday’s close, the yield on U.S. 10-year Treasury notes has risen about 9 basis points. While you can criticize the stock’s valuation and its lack of profits according to generally accepted accounting principles, Roblox is actually a pretty significant cash generator, boasting more than $615 million in positive free cash flow generated over the past 12 months.
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