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Roblox (RBLX) stock has decreased by 22.3% in less than a month, dropping from $138.56 on 10/15/2025 to $107.66 currently. The sell-off comes after the company’s recent Q3 earnings, which showed significant revenue and user growth, but also a large net loss compared to last year. Management also projected a slight margin decline in 2026 due to increased spending on infrastructure, developer exchange rates, and safety measures. UKRAINE - 2021/10/05: In this photo illustration a Roblox logo of an online game platform is seen on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images What lies ahead? It appears that the stock may decline further. The present correction, given the stock's Very High valuation, indicates the potential for additional downside. A price of $73 is not beyond the realm of possibility, particularly since the stock has reached this level within the past 5 years. So should you hold off before taking advantage of this dip? Maybe. There is no foolproof method to time dips perfectly. However, here is another viewpoint on RBLX stock to assist in your decision-making process. Historically, the stock has yielded a (median) 4.9% return over one year, and 41% as a peak return following sharp dips (>30% in 30 days). For a brief overview, RBLX offers an online entertainment platform with complimentary tools for developers to create, publish, and manage 3D experiences, catering to clients worldwide across various regions. For information on stock fundamentals and evaluations: Check Buy or Sell Roblox Stock to gain a comprehensive understanding. Investing in a single stock carries risks, but a diversified strategy offers significant value. Quiz time: In the past 5 years, which index do you believe the Trefis High Quality Portfolio has outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. Discover how our advisory framework enhances your advantages. Historical Median Returns Post Dips MORE FOR YOU Historical Dip-Wise Details RBLX has experienced 4 events since 1/1/2010 where the dip threshold of -30% within 30 days was met 41% median peak return within 1 year following a dip event 77.5 days is the median duration to peak return after a dip event -23% median maximum drawdown within 1 year following a dip event Roblox Passes Basic Financial Quality Checks It’s critical to assess revenue growth, profitability, cash flow, and balance sheet strength to minimize the risk of a dip indicating a worsening business situation. Quality checks Purchasing during a dip, while appealing, should be scrutinized carefully from several perspectives. This multi-faceted analysis is precisely how we formulate the Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, which has a history of consistently exceeding its benchmark that includes all three — the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? Collectively, HQ Portfolio stocks yielded superior returns with lower risk compared to the benchmark index; a smoother ride, as reflected in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
