The Goldman Sachs Group, Inc.

The Goldman Sachs Group, Inc. (NYSE: GS) is a global financial institution that offers a wide range of services, including investment banking, asset management, and wealth management, to corporates, financial institutions, governments, and individuals worldwide.

Key Highlights

• The company reported YoY growth of 15.74% in net revenue to USD 15.39 billion in Q2FY21 (ended June 30, 2021) compared to USD 13.30 billion in Q2FY20.
• Net income for Q2FY21 grew 26.14x to USD 5.35 billion from USD 197 million in Q2FY20.
• On August 19, 2021, Goldman Sachs Asset Management, a subsidiary of GS, along with Charlesbank Capital Partners, signed an agreement to collectively acquire a majority stake in MDVIP, a membership-based healthcare company, from Leonard Green & Partners and Summit Partners.
• GS’ net margin for Q2FY21 was 32.9%, higher than the industry median of 24.8%.
• Relatively high ROE of 5.5% in Q2FY21 vs. industry median of 4.8%.
• Stock is currently trading above its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 185.52 to USD 418.62.
• GS’ share price has increased 27% and 75.25% in the past six and nine months, respectively.

Technical Price Chart (as of August 19, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects the robust business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the closing price of USD 393.57, down 1.31% as of August 19, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Roblox Corporation

Roblox Corporation (NYSE: RBLX) operates an online entertainment platform that allows users to connect to develop immersive digital experiences. The company's shares were listed on the NYSE on March 10, 2021.

Key Highlights

• The company reported a surge of 126.61% in revenue to USD 454.10 million in Q2FY21 (ended June 30, 2021) compared to USD 200.39 million in Q2FY20.
• Net loss for Q2FY21 increased to USD 140.13 million from USD 71.52 million in Q2FY20.
• On August 16, 2021, RBLX acquired Guilded, Inc., a privately-owned company focused on building a platform for connecting gaming communities.
• RBLX's gross margin for FY20 was 74.0%, higher than the industry median of 55.3%.
• Stock is currently trading below its crucial short-term (50-day) SMA support level.
• Stock is currently trading at the mid-band of its 52-week range of USD 60.50 to USD 103.87.
• RBLX's share price has increased 1.85% and 6.56% in the past one month and three months.

Technical Price Chart (as of August 19, 2021). Analysis by Kalkine

Conclusion: Considering the slight movement in the stock price in the past three months, a surge in topline, recent acquisition and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 81.35, down 2.53% as of August 19, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

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