Markets
Roblox
(Roblox)

Roblox jumps as the gaming giant tops Q1 estimates and user growth picks up steam

Bonus: no tariffs in the metaverse.

Nia Warfield

Roblox shares popped as much as 7% after the gaming giant beat Q1 estimates across the board.

The company’s net loss for the quarter narrowed to $0.32 per share, better than the $0.40 expected by analysts. Bookings, a key revenue metric, hit $1.2 billion, topping both Wall Street expectations and Roblox’s own guidance of $1.12 billion to $1.15 billion. Meanwhile, daily active users soared, growing 26% to 97.8 million.

“Roblox creators earned a record $281.6 million this quarter,” CEO David Baszucki said. “More than 100 developers made over $1 million in the past year — and the community is on track to earn over $1 billion this year.”

Roblox has been leveling up its ad business, recently launching rewarded video ads that let players watch 30-second clips in exchange for in-game perks. Brands will soon be able to buy these placements directly — or through Google.

Looking ahead, Roblox expects Q2 bookings between $1.17 billion and $1.19 billion, ahead of the $1.14 billion Wall Street forecast. Shares are up 90% over the past year.

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The nonprofit still owns about 10% of the company, a stake now worth about $80.9 billion.

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Max Knoblauch

Global automakers sink as Trump implies the trade war is heating back up

Shares of several major automakers with large footprints in China sank on Friday following President Trump’s threats to massively increase tariffs on goods from China in response to what he called “hostile” export controls.

Chinese EV titans like BYD, Nio, and XPeng plunged after Trump’s Truth Social post, along with automakers like Tesla and Stellantis that heavily rely on revenue from sales in the country.

EV makers like Rivian and Lucid, which source raw materials and or batteries from China, were also down following the post.

The move comes at a rocky time for US automakers, with the end of the EV tax credit expected to heavily ding sales for the rest of the year.

markets
Matt Phillips

Rare earth stocks spike after Trump says China should not be allowed to hold the world “captive” on rare earths

Shares of rare earth metal producers soared Friday after the president published a Truth Social statement decrying what he describes as Chinese efforts to control the pipeline of the sought-after minerals.

Companies such as MP Materials — which the US government recently took a stake in — USA Rare Earth, and Critical Metals jumped, suggesting investor bets that the the administration could play a bigger role in ensuring US access to rare earths.

Donald J. Trump (@realDonaldTrump)

Companies such as MP Materials — which the US government recently took a stake in — USA Rare Earth, and Critical Metals jumped, suggesting investor bets that the the administration could play a bigger role in ensuring US access to rare earths.

markets
Luke Kawa

US stocks sink after Trump says he’s considering a “massive increase” of tariffs on Chinese imports

More tariffs might be back on the menu.

US stocks reversed lower after US President Donald Trump said in a Truth Social post that he is considering a “massive increase” on tariffs of Chinese imports.

Trump said he’s mulling higher levies as well as “many other countermeasures” because of “the hostile ‘order’ that they have just put out” restricting the export of rare earth metals. He also seemingly canceled his upcoming meeting with Chinese President Xi Jinping in South Korea in two weeks, saying “now there seems to be no reason to do so.”

The SPDR S&P 500 ETF, Invesco QQQ Trust, and iShares Russell 2000 ETF all gave up early gains to fall more than 1%. A basket of stocks compiled by Goldman Sachs of US companies that have significant revenue exposure to China is off more than 2%.

Wafer fab equipment stocks Lam Research, Applied Materials, and KLA Corp, which all count China as their top market, are underperforming, as is iPhone seller Apple.

Chip stocks Advanced Micro Devices, Intel, Broadcom, and Nvidia are all getting hit on the news, as rare earths are needed components for semiconductor production. For Tesla, it’s a similar story given its footprint in China and the importance of rare earths for EVs.

There’s also a lot of plain old dumping of recent winners.

Super Micro Computer, Coinbase, and Robinhood Markets are among the biggest laggards since Trump’s post as investors cut risk.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

The rare earth curbs are far from the only recent example of China stepping up its defense of domestic industry and resources. Qualcomm is the subject of an antitrust investigation, stringent checks of semiconductor shipments are reportedly in place as officials look to keep Nvidia’s chips from entering the country, and separate reporting indicates that US ships will be charged an escalating fee for docking at Chinese ports.

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