Josh Brown reveals ‘one of his worst’ buys in recent months

Roblox Corp (NYSE: RBLX) has been a catastrophe this year, with the stock now down more than 50% YTD. Unfortunately, though, things aren’t going to change for the better anytime soon, says the CEO of Ritholtz Wealth Management.

Brown’s remarks on CNBC’s ‘Halftime Report’

According to Josh Brown, now is “not” a suitable environment for Roblox to bloom. Referring to his position in the American video game developer, he said on CNBC’s “Halftime Report”:

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It’s one of the worst buys I’ve made in recent months. Bought it down huge from its high, thinking there’s safety in where I was getting in it, it was stupid. This stock’s not going to work right now. This one might see more all-time lows in the future.

In mid-February, Roblox reported its Q4 financial results that came in shy of Wall Street estimates, as quarterly loss expanded 1.5x on a year-over-year basis.

Brown remains bullish on RBLX for the long term

Brown’s dovish outlook, however, is for the near term only. For the longer term, he continues to see the California-based Roblox Corp as a promising play on the metaverse.

Roblox is the closed thing we have to an actual metaverse. The business model is phenomenal. So, I think the stock and the company will ultimately work out. There will be a time and a place, but this isn’t it.

Also on Thursday, Citi analyst Jason Bazinet said RBLX was a “buy” with an upside to $59 a share or more than 30% upside from here.