(WHAT’S HAPPENING AT ROBLOX AND PAYPAL?)
August 11, 2023
Hello everyone,
Roblox gets punished after the earnings report.
Roblox stock took the lift down yesterday after its latest earnings report, giving up almost all the gains it had made so far this year. The videogame-platform company’s issues with managing costs, and uncertainty over its timeline to increasing profitability are posing problems for the market.
Roblox stock (RBLX) dropped 22% after it reported a bigger quarterly earnings loss than expected. The shares were staging only a small recovery on Thursday, up 2% in premarket trading.
That leaves Roblox stock only marginally up in 2023 so far, and down 26% over the last three months. There is growing apprehension over its ability to cut costs and increase its earnings margin.
Roblox executives are pinning their hopes on the launch of its new advertising platform which they hope will help grow its income ahead of expenses in coming quarters.
Roblox is one of my son’s favourite places to hang out with his friends. He designs environments here and plays competitive games as well. The creative digital worlds are designed with all age groups in mind. No one is ever too old to play here.
PayPal launches U.S.$ stable coin (PYUSD).
PayPal USD is designed to contribute to the opportunity stable coins offer for payments and is 100% backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents. PayPal USD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company.
From early August onwards, eligible U.S. PayPal customers who purchase PayPal USD will be able to:
Transfer PayPal USD between PayPal and compatible external wallets
Send person-to-person payments using PYUSD.
Fund purchases with PayPal USD by selecting it at checkout.
Convert any of PayPal’s supported cryptocurrencies to and from PayPal USD.
Dan Schulman, president, and CEO of PayPal states that the “shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S.$.” Furthermore, Schulman argues that “our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
Brief market update:
Nasdaq could reach 4400 or even 4200 before it rallies again into the end of the year. A buyer’s market at the aforementioned levels.
Euro, Pound Sterling, Aussie dollar, and Kiwi dollar may face significant downside in the weeks ahead.
Gold could get down to 1880 before rallying to new highs.
Wishing you all a great weekend.
Cheers,
Jacquie
