SPY414.92-5.67 -1.35%
DIA332.96-5.20 -1.54%
IXIC14,030.38-130.97 -0.92%

Simpler Trading's Danielle Shay Says Roblox Is 'Crack For Kids'

Danielle Shay, director of options at Simpler Trading,  discussed trading Roblox Corp (NYSE: RBLX) Friday on CNBC's "Trading Nation."
05/07/2021 17:08

Danielle Shay, director of options at Simpler Trading,  discussed trading Roblox Corp (NYSE:RBLX) Friday on CNBC's "Trading Nation."

Roblox is essentially "crack for kids," Shay said.

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.

Related Link: Benzinga's Top Ratings Upgrades, Downgrades For May 4, 2021

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.)