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Roblox (NYSE:RBLX) fell over 15% after its recent earnings release, as the company hinted at potential margin pressures. When examined through the lens of the Adhishthana Principles, a deeper clarity emerges on why this may be happening, and what lies ahead for the stock.
On the monthly chart, Roblox is currently in Phase 2 of its 18-phase Adhishthana cycle.
According to the Principles, Phase 2 unfolds in two distinct parts:
In Roblox's case, the stock is still navigating its initial Sankhya period, which is expected to last until August 2027. This phase is usually defined by consolidation and sluggish performance, not meaningful uptrends.
Therefore, the sharp rebound that lifted Roblox from around $50 to $150 earlier was not a true structural rally under the Adhishthana framework, it lacked the foundational timing alignment that signals a lasting move.
Ideally, the structure should have resembled something like CIENA's setup, which we highlighted in our article "Why CIENA Looks Poised For A Sustained Bullish Run." Since that analysis, CIENA has already rallied ~34%, illustrating how well-timed formations lead to enduring strength.
With margin pressures emerging and the stock still in the Sankhya period, Roblox's current setup looks uncertain. If the stock rallies from current levels, that move would technically come at the wrong time within its cycle – rallies that occur during Sankhya often reverse or lose steam as the stock transitions into its Buddhi phase.
Alternatively, Roblox may remain range-bound or consolidative until the Buddhi period properly begins. While several institutional funds continue to hold Roblox at overweight, we believe that adding exposure before the Sankhya period concludes may be premature. For those already holding the stock, expect volatility and a broad consolidation bias with a tilt toward weakness.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
Posted In: RBLX
