It's time to sell this overly loved video game stock: Carter Worth


Financial analyst Carter Worth advises investors to reduce their exposure to Roblox stock due to its significant price surge and overbought status.
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Sometimes a stock is too popular or, in stock market parlance, it's overbought. By our work, such is the case for Roblox (RBLX) . The stock hit a low of $50.10 on April 7. Since then, it's up more than 100% to around $101. On May 9, 2024, shares traded as low as $25.55. They have surged more than 240% during that time. Here's what to do: If long: Trim, sell calls, reduce exposure, take measures of some kind, do something before — as they say — someone does it for you. If not involved: Stay away. If engaged in short selling: Sell. Roblox is not for the faint of heart, as the chart below shows. Shares are trading in an increasingly steep, uncorrected advance, far above its smoothing mechanism (150-day moving average). We are sellers. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.

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