Roblox Momentum & Facebook Earnings Run-up Continuation

Hi everyone,

My Thoughts for Today

Roblox ($RBLX)

Roblox rallied yesterday and I am expecting a potential upside breakout that could be played with shares or mid-term at-the-money call options. Positive catalysts:

• Comscore Data: In February 2021, Roblox saw 34 million unique U.S. consumers spend 6.3 billion minutes accessing its desktop and mobile gaming platform, a growth of 32% and 39%, respectively. Comparatively, Zynga's desktop and mobile platforms saw 28 million monthly unique digital visitors. Roblox's strong performance is supported by strong engagement with younger age groups: it ranked first amongst selected gaming companies in February 2021 for desktop reach amongst A13 and under, and first for desktop reach with 13 to 17 year-olds.

• More of a Fun Fact: Nancy Pelosi bought RBLX. See screenshot below:

  

Facebook ($FB)

I am anticipating a final earnings run-up if overall market conditions don’t deteriorate. At-the-money call options might be an interesting play that could be secured prior to the earnings release on April 28th. My thoughts:

• FB might be considered the best value FANG play by retail investors.

• Significantly increased ad auction competition fueled by:

  • Increased advertising demand from by the travel industry clients

  • Physical-location based SMBs such as restaurants and gyms

• Increased CPMs while MAUs remained flat -> Revenue and EPS beat.

• Regulatory issues don’t seem to be top of mind at the moment.

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This Week’s Earnings

Source: https://www.earningswhispers.com/

Yesterday’s Price Target Changes

• AXP: Jefferies raises target price to $145 from $125

• AON: JP Morgan raises target price to $241 from $228

• BX: Jefferies raises price target to $88 from $71

• CG: Jefferies raises price target to $44 from $36

• CVX: Jefferies raises price target to $109 from $101

• COP: Credit Suisse raises price target to $66 from $58

• DVN: Credit Suisse raises price target to $30 from $26

• FCX: Scotiabank Raises Price Target To $42 From $35

• FOXA: Credit Suisse raises price target to $44 from $37

• IVZ: Jefferies Raises Price Target To $26 From $21

• MCD: Piper Sandler raises price target to $225 from $209

• MRO: JP Morgan Raises Price Target To $14 From $13

• NTAP: Summit Insight Group raises price target to $100 from $75

• OXY: Credit Suisse raises price target to $21 from $18

• OXY: Jefferies raises price target to $28 from $27

• PEP: JP Morgan Raises Price Target To $155 From $152

Source: @DeItaone

Have a great day,

Option Trader

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All opinions expressed in this newsletter are for general informational purposes only and are not intended to provide financial advise for any individual or for any specific investment product.