Roblox (RBLX) shares are diving after reporting wider-than-expected losses in its second-quarter earnings. Missing on earnings estimates with losses of $0.46 per share, the video game company topped revenue expectations by drawing in $780.7 million. Roblox did see an increase in daily active users and monthly player counts. "They're just not as profitable as I think a $20 billion valuation implies they should be," Michael Pachter, Wedbush Managing Director of Equity Research, tells Yahoo Finance Live. "They told us to expect single-digit profit margins," later adding: "The Street read that as 9% and it came in at 4.9%, so they really surprised people with how bad their profits were." Pachter cites Amazon CEO Andy Jassy's pivot to profitability after a series of stock losses as inspiration Roblox should aspire to. Pachter also examines Take-Two Interactive's (TTWO) earnings miss ahead of forecasts for Grand Theft Auto VI's release, Microsoft's (MSFT) deal with Activision-Blizzard (ATVI), and the metaverse's future in gaming.
Roblox (RBLX) shares are diving after reporting wider-than-expected losses in its second-quarter earnings. Missing on earnings estimates with losses of $0.46 per share, the video game company topped revenue expectations by drawing in $780.7 million. Roblox did see an increase in daily active users and monthly player counts.
"They're just not as profitable as I think a $20 billion valuation implies they should be," Michael Pachter, Wedbush Managing Director of Equity Research, tells Yahoo Finance Live. "They told us to expect single-digit profit margins," later adding: "The Street read that as 9% and it came in at 4.9%, so they really surprised people with how bad their profits were."
Pachter cites Amazon CEO Andy Jassy's pivot to profitability after a series of stock losses as inspiration Roblox should aspire to. Pachter also examines Take-Two Interactive's (TTWO) earnings miss ahead of forecasts for Grand Theft Auto VI's release, Microsoft's (MSFT) deal with Activision-Blizzard (ATVI), and the metaverse's future in gaming.
AP Finance
While President Joe Biden has invested billions into federal programs that subsidize the poorest Americans' energy costs, the money reaches only a fraction of the most vulnerable during the sweltering summer months. Nationwide, nearly 30 million American households struggle to pay their energy bills and qualify for the subsidy, but less than 3% receive it for their summer bills, according to the latest, preliminary federal data. Compared to food stamps, which reach over 80% of the eligible population nationwide, the Low Income Home Energy Assistance Program, or LIHEAP, falls far short even as climate change helped make July Earth’s hottest month on record and air conditioning becomes a means of survival.
Reuters
Zee Entertainment Enterprises reported a quarterly loss on Wednesday, hurt by weak demand for advertisements, while expenses surged. The broadcaster, which is closing in on a merger with the India unit of Japan's Sony Group, posted a consolidated net loss of 534.2 million rupees for the first quarter ended June 30, against a profit of 1.07 billion rupees a year earlier. Total income rose 6.4% to 19.98 billion rupees, while expenses jumped nearly 17%, driven by higher operating, employee as well as marketing costs, the company said in a filing.
Reuters
The average U.S. 30-year mortgage rate jumped to a nine-month peak on Wednesday and hit the second-highest rate since 2001, as interest rates reacted sharply to a downgrading of U.S. government debt. The average 30-year mortgage rate shot up to 7.09% for the week ending Aug. 4, a 16 basis point increase from the previous week's 6.93% rate, according to a weekly report released by the Mortgage Bankers Association. Potential borrowers adjusted promptly to the surging cost of borrowing: the mortgage applications index - a measure of total mortgage application volume - fell 3.1% to a six-month low of 194.5.
Bloomberg
(Bloomberg) -- Roblox Corp. plunged by 21%, the most in nine months, after reporting that people were spending less time playing its games in the second quarter and missing Wall Street’s estimates. Most Read from BloombergEveryone Wants to Work at UPS After Teamsters DealWeWork Tumbles After Raising ‘Substantial Doubt’ About FutureTycoon Who Gave Away $750 Million Sees Profit in Loans to PoorFirst American City to Tame Inflation Owes Its Success to Affordable HousingTesla CFO Kirkhorn Exits With
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