Bullish CEO Tom Farley: The institutional wave in crypto has begun
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
32 minutes ago
- Yahoo
RBLX Q2 Deep Dive: Viral Hits Drive User Growth, Guidance Highlights Monetization Shift
Gaming metaverse operator Roblox (NYSE:RBLX) missed Wall Street's revenue expectations in Q2 CY2025, but sales rose 20.9% year on year to $1.08 billion. Next quarter's revenue guidance of $1.14 billion underwhelmed, coming in 3.5% below analysts' estimates. Its non-GAAP loss of $0.41 per share was 7% below analysts' consensus estimates. Is now the time to buy RBLX? Find out in our full research report (it's free). Roblox (RBLX) Q2 CY2025 Highlights: Revenue: $1.08 billion vs analyst estimates of $1.10 billion (20.9% year-on-year growth, 2% miss) Adjusted EPS: -$0.41 vs analyst expectations of -$0.38 (7% miss) Adjusted EBITDA: $320.3 million vs analyst estimates of $220.3 million (29.6% margin, 45.4% beat) The company lifted its revenue guidance for the full year to $4.44 billion at the midpoint from $4.33 billion, a 2.6% increase Operating Margin: -29.8%, down from -26.6% in the same quarter last year Daily Active Users: 111.8 million, up 32.3 million year on year Market Capitalization: $89.8 billion StockStory's Take Roblox's second quarter results reflected strong user and engagement growth, as management emphasized the impact of several viral experiences and ongoing investments in platform quality, developer tools, and global infrastructure. CEO David Baszucki attributed the performance to robust creator activity and highlighted the emergence of new experiences such as Grow a Garden, which contributed to a broad-based lift in engagement and monetization across the platform. Baszucki noted, 'Our strength in Q2 was broad-based across the platform,' and pointed to record levels of both daily active users and monthly unique payers as evidence of this momentum. Looking ahead, Roblox's updated guidance is shaped by its belief in continued expansion of the creator ecosystem, AI-powered platform enhancements, and monetization diversification. CFO Naveen Chopra cautioned that guidance for the next two quarters reflects conservative assumptions around the sustainability of recent viral hits, as well as tougher year-over-year comparisons. Chopra stated, 'It's just too early to extrapolate Q2's extraordinary trends over a prolonged period of time,' but outlined confidence in the company's strategy to capture a larger share of the global gaming content market through technology investments and new monetization channels. Key Insights from Management's Remarks Management pointed to a combination of viral content, improved platform infrastructure, and expansion into new demographics and geographies as key drivers for the quarter and areas of focus for future growth. Viral content drives engagement: Experiences like Grow a Garden and 99 Nights in the Forest contributed to a surge in daily active users, with Baszucki noting that four out of the platform's five top hits launched within the last year. These titles not only attracted new players but also encouraged cross-engagement with other games, highlighting a healthy ecosystem. Developer ecosystem broadening: Chopra emphasized that more than half of the experience spending growth came from titles outside the top ten, signaling a wider distribution of earnings and opportunity for smaller creators. The new Creator Rewards program shifts incentives to reward developers who bring organic traffic and new users, aiming to further diversify and strengthen the content pipeline. AI and infrastructure investments: The company rolled out enhancements such as Cube 3D, a generative AI model for in-game assets, and continued to improve global server performance. These investments are intended to accelerate content creation and support rapid scaling as user numbers climb. International expansion gains traction: Management cited particularly strong growth in the Asia-Pacific region, attributing success to improved translation, localized infrastructure, and targeted content. Countries like Indonesia and Korea saw year-over-year bookings growth exceeding 100%. Shift in monetization models: Roblox is experimenting with new monetization tools, such as Rewarded Video ads (including through a partnership with Google), dynamic pricing, and IP licensing. The company sees these as critical to increasing revenue per user, especially among older demographics. Drivers of Future Performance Roblox expects continued user growth and content diversity to underpin its outlook, with a focus on expanding monetization and sustaining engagement as key priorities. Sustaining viral hit momentum: Management is cautious about projecting ongoing success from recent viral titles, assuming normalization in engagement and spending. However, they believe investments in discovery algorithms and creator incentives could foster repeatable viral content that drives further platform growth. Monetization diversification: The rollout of new ad formats, partnerships for IP licensing, and expanded creator monetization tools are expected to gradually increase revenue per user. Management highlighted opportunities to capture higher monetization rates among older users and through non-traditional gaming genres. Headwinds from tougher comparisons and uncertainty: Chopra referenced difficult year-over-year comps in the second half of the year and the unpredictability of viral trends. The company's conservative guidance reflects these risks, particularly regarding the durability of user engagement and the timing of new monetization initiatives. Catalysts in Upcoming Quarters In the coming quarters, the StockStory team will closely monitor (1) the sustainability of viral hit engagement and whether new experiences can replicate recent success, (2) incremental monetization from new ad formats and IP licensing, and (3) continued expansion into key international markets, especially in Asia-Pacific. Execution on AI-powered platform upgrades and creator incentive programs will also be critical signposts. Roblox currently trades at $129.50, up from $124.90 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Now Could Be The Perfect Time To Invest In These Stocks When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
CNBC
38 minutes ago
- CNBC
Trump's meeting with Putin is a win-win for European defense stocks, no matter the outcome
European defense stocks have further to run regardless of whether U.S. President Donald Trump and Russian counterpart Vladimir Putin achieve a breakthrough on the war in Ukraine later this week, market watchers say. Trump and Putin are slated to meet in person in Alaska on Friday, with a view to discuss what it would take to end the more-than-three-year conflict that began with Russia's full-scale invasion of Ukraine in early 2022. Reports that the two heads of state would meet buoyed broader European equities on Thursday, but sank regional defense stocks . Concerns about Russian aggression had contributed to decisions by European governments and the NATO military alliance to drastically hike their defense budgets, benefiting security companies operating in the region . So far this year, the Stoxx Europe Aerospace and Defense index has surged by 52%. Following three consecutive days of losses after the Trump-Putin summit was announced, the index regained some ground, and was last seen trading 1.3% higher in Thursday's session. Market watchers told CNBC that a deal to end the fighting in Ukraine — which may not be on the horizon of Friday's meeting — was unlikely to throw Europe's defense growth off course. 'Win-win' for defense stocks In emailed comments to CNBC on Wednesday, Dmitrii Ponomarev, product manager at VanEck EU, pointed to a recent Financial Times report that Europe is "building for war," with arms sites expanding at roughly thrice the pace struck during peace time. He labeled this as "evidence that the current ramp is broader than Ukraine resupply alone." "No firm would add that much capacity if it depended only on Ukraine shipments; the bigger driver is NATO Europe's pivot to modernization and restocking under the new 5% of GDP long-term goal, of which about 3.5% is the truly comparable "core" defense spend, anchoring multi-year demand," he said. "Even with a peace deal, stockpiles don't magically refill: governments still face years of munitions and air-defense replenishment, so revenues likely shift from short-term surge programs toward steadier replenishment, sustainment, and long-horizon modernization." VanEck runs a $6.9 billion Defense ETF, which includes stakes in some of Europe's biggest defense stocks. Among the fund's top holdings are Italy's Leonardo , France's Thales and Sweden's Saab . Ponomarev said that companies that rely more heavily on deliveries to Ukraine or supplying short-cycle munitions "may feel a sharper de-rating if urgency fades" from any potential breakthrough emerging from this week's Alaska summit between the Russian and U.S. leadership. "[But] more diversified primes with long-cycle programs, services, and sustainment should be better placed to absorb near-term volatility," he said. Asked on Monday whether the European defense boom remained a long-term story regardless of the outcome in Ukraine, Christopher Granville, managing director of TS Lombard, said he "strongly agrees" that the momentum has further to run. "My call on European defense stocks since about 2023 — when it became clear that the Russian military was extremely powerful and was not going to be rolled out of those territories in eastern and southern Ukraine — has been buy on any weakness, on any temporary pullback, because this is a win-win for European defense stocks," he told CNBC's "Squawk Box Europe." Granville pointed out that either the negotiations would go off the rails on Friday — an outcome that he labeled "more than perfectly possible, if not likely" — or peace would be struck. The former would result in the need for America and Europe to replenish their arms inventories, he said, while the latter would lead to "a very powerful Russian military." "Although the words victory and defeat [would] be bandied around, [this would be] a Russian military which has to an extent, prevailed," he said. "That reality will force a continued increase in defense procurement by European governments, and it's also good for European defense stocks. Either way, it's a winner." Granville noted that markets had been discounting the second scenario's ability to benefit defense companies. "From time to time, those names pull back a bit — you should buy on that weakness in my opinion," he advised. 'At least a decade' of rearmament Defense company leaders have been telling CNBC in recent weeks that an end to the Ukraine war would be unlikely to derail the boost to European defense spending. In conversation with CNBC's "Worldwide Exchange" on Monday, Dimitrios Kottas, co-founder and CEO of Greek autonomous defense tech developer Delian Alliance Industries, said the timing of Europe's consensus to modernize defense capabilities was correlated with the invasion of Ukraine, but argued that this rearmament would last "at least a decade." "It's something that is driven by historical macroeconomic forces, [that are] much stronger than the current ongoing invasion in Ukraine," he said. Micael Johansson, CEO of Swedish defense giant Saab , meanwhile insisted the growth in European defense was "absolutely" a long-term trend. "I have a hard time seeing, after all that happened with the invasion in Ukraine and the aggressive neighbor that we have to the east … even if we get a ceasefire or peace deal that is reasonable with Ukraine, that [governments] would step back and say it's over," he said in an interview with CNBC toward the end of July. Earnings misses and downgrades The bull run this year hasn't been a continuously upward trajectory, even without questions surrounding the future of Ukraine. Shares of German arms manufacturer Rheinmetall shed 8% on Thursday, after the firm's earnings came in below expectations . The company said contracts had not been awarded during the reporting period given the election of a new government in Germany, but noted that an anticipated influx of orders in the second half of 2025 meant Rheinmetall was able to confirm its full-year guidance. Rheinmetall is one of the best performers in European defense this year, with its shares gaining roughly 160% over the course of 2025. In a Friday note, Deutsche Bank's Christoph Laskawi argued that Rheinmetall's second-quarter result "does not change the investment case by any means." "The order intake potential ahead remains significant and the win rate should be high which is the basis for sizeable revenue growth in the coming years," he said. Back in June , Citi's European Aerospace and Defence analyst Charles Armitage downgraded Hensoldt, Renk and Saab — whose shares have all more than doubled in value this year — to give them a "sell" rating. He argued at the time that the companies were "pricing in more growth than seems likely." A lot of optimism nevertheless still remains in the sector. "It's no surprise [defense] share prices have jumped sharply this year, maybe to unsustainable levels in the short term and a welcome resolution or ceasefire in Ukraine may see their prices soften," Neil Birrell, chief investment officer at U.K. investment management firm Premier Miton, told CNBC by email. "However, the spend on defence and related infrastructure is here to stay and will be taking place over the coming years and decades. The move to greater … regional self-reliance for defence, energy, food and raw materials is a very long-term one. Defence stocks will be big beneficiaries of that."
Business Insider
an hour ago
- Business Insider
Stifel Nicolaus Keeps Their Hold Rating on Kontoor Brands (KTB)
Stifel Nicolaus analyst Peter McGoldrick maintained a Hold rating on Kontoor Brands on August 12 and set a price target of $73.00. The company's shares closed yesterday at $70.71. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. McGoldrick covers the Consumer Cyclical sector, focusing on stocks such as Fox Factory Holding, Kontoor Brands, and Crocs. According to TipRanks, McGoldrick has an average return of 0.8% and a 33.33% success rate on recommended stocks. In addition to Stifel Nicolaus, Kontoor Brands also received a Hold from TR | OpenAI – 4o's Vince Stitcher in a report issued on July 30. However, on August 12, TR | OpenAI – 4o reiterated a Buy rating on Kontoor Brands (NYSE: KTB). Based on Kontoor Brands' latest earnings release for the quarter ending March 29, the company reported a quarterly revenue of $622.9 million and a net profit of $42.88 million. In comparison, last year the company earned a revenue of $631.15 million and had a net profit of $59.51 million
