Roblox is essentially "crack for kids," Shay said.
The newest stocks on the block are set to report next week. @traderDanielle and Craig Johnson of Piper Sandler share which they're watching $DASH $BMBL $ABNB $COIN $POSH $RBLX $PLTR pic.twitter.com/fg42NGTLDY— Trading Nation (@TradingNation) May 7, 2021
Although she noted that the company's business model is a little bit questionable, it's very lucrative.
Upcoming Earnings: Roblox is scheduled to report first-quarter financial results on May 10.
Shay expects the stock to move about $8 one way or the other after the company reports earnings. If it pulls back, Shay would be a buyer of the stock, she told CNBC.
Recent Analyst Rating: JPMorgan initiated coverage of Roblox on Tuesday with an Overweight rating and a price target of $85.
RBLX Price Action: Roblox made its market debut on March 10. Since that time, the stock has traded as high as $83.41 and as low as $60.50. At market close Friday, shares were up 4.37% at $67.65.
(Photo courtesy of Roblox.)