Roblox Stock Fell 5% Before Earnings For This Reason

Roblox is expected to report earnings on Wednesday, and investors are getting ready for foreseen disappointment.

Roblox warned investors last month that bookings were down roughly 7% to 10% per user in September. In the case of Roblox, “bookings” basically means customer purchases of Robux virtual currency, to spend later in the game at which point these bookings become revenues.

Sales are expected to be up single digits, but earnings could be down double digits. Shares of online video game platform fell by 5.1% in early trading Monday, as of 10:20 a.m. ET, as investors hedge their bets against a potential earnings disappointment later this week.

Roblox shares, which have been up and down all year, have been down more often than up in the run-up to earnings, falling 15% since hitting their most recent high two weeks ago. They’re also down 47% over the past 52 weeks. Q3 is widely thought of as hard time for Roblox.