Anna Nikolayevsky Is Selling Off Roblox and These 4 Stocks

Below we’ll examine why Anna Nikolayevsky Is Selling Off Roblox and These 4 Stocks. For our methodology and a more comprehensive list, please see Anna Nikolayevsky Is Selling Off Roblox and These 9 Stocks.

5. Roblox Corporation (NYSE:RBLX)

Former Value of Axel Capital Management‘s 13F Position: $8.77 million

Number of Hedge Fund Shareholders (as of March 31): 40

Anna Nikolayevsky’s Axel Capital Management sold off its 85,000 shares of Roblox Corporation (NYSE:RBLX) during the first quarter, removing the stock from its 13F portfolio a year after initially adding it. There was a significant hedge fund exodus from the mobile game developer’s stock in Q1, as 34% of former hedge fund shareholders sold it off during the quarter.

Roblox Corporation (NYSE:RBLX) shares have crumbled by 73% this year as bookings for the company’s eponymous mobile game have dried up even as its active user base continues to grow at a strong clip. Bookings fell by 3% year-over-year to $631.2 million in Q1, and though revenue grew by 38% to $537.1 million, the company’s GAAP net loss also widened to $160.2 million, or $0.27 per share.

Even with pandemic restrictions having faded considerably in many parts of the world, Roblox Corporation (NYSE:RBLX) did experience strong Q1 growth in its active user base and hours of engagement. The former grew by 28% year-over-year to 54.1 million, while the latter grew by 22% to 11.8 billion.

While user growth and engagement remains strong, it nonetheless appears that hedge funds aren’t convinced that Roblox will be able to maintain the same level of financial commitment from those players now that they have a wider array of entertainment and activity choices to spend their money on in 2022 and beyond.