RBLX and SCHW are both substantially lower after today's bear notes
As the market looks to extend its slump, two stocks are having a particularly tough time today after a pair of bear notes.
Roblox Corp (NYSE:RBLX) is down 8.2% to trade at $32.81 at last glance, after Morgan Stanley downgraded the stock to "underweight" from "equal weight," with a price-target cut to $24 from $27.50. The firm limited upside for the stock after its recent outperformance. Year-to-date, RBLX is up 16.4%.
Of the 30 analysts in coverage, 12 carry a "buy" or better rating, 10 a "hold," and eight a "sell" or worse, while the 12-month consensus price target of $36.22 sits at a 9.2% premium to current levels. It's also worth noting that short interest represents 5.5% of Roblox stock's available float.
The shares of Charles Schwab Corp (NYSE:SCHW) are off 5% at $77.31 at last check, after a double-downgrade from BofA Global Research to "underperform" from "buy," with a price-target cut to $75 from $92. The firm believes customers will adjust their portfolios to account for higher interest rates this year.
After the close yesterday, Charles Schwab reported fourth-quarter earnings of $1.09 per share -- in line with analyst estimates -- alongside lower-than-expected revenue of $5.50 billion. No fewer than three other analysts lowered their price targets after the event as well, including Barclays to $87 from $92.
Support at the $76 level looks like it could keep today's losses in check, as the stock also grapples with its 320-day trendline, which has provided support since late October. Year-over-year, SCHW is down 16.3%.