Traders: These two high-velocity stocks reporting earnings next week justify their high valuations

Dow Jones Industrial Average hit a record high of 34,800 on Friday. With more earnings on the horizon, a further push next week is quite conceivable.

Todd Gordon wants to gamble on Roblox

TradingAnalysis.com founder, Todd Gordon, said on CNBC’s “Trading Nation” on Friday that it’ll be worth seeing how results playout for the high-velocity stock, Roblox Corp (NYSE: RBLX). The video gaming platform is currently exchanging hands at a price-to-earnings multiple of 145. Gordon said:

Roblox is scheduled to report its first ever quarterly results since going public on Monday, May 10^th. The San Mateo-based firm debuted on the New York Stock Exchange in March at a per-share price of £49.63. It is currently trading at £48.49 per share after hitting a high of £58.59 per share in mid-April.

Roblox is expected to report £407.05 million of revenue that translates to an annualised growth of about 100% and roughly 9.28 pence of earnings per share. According to Gordon:

Michael Bapis is positive on Disney

Michael Bapis of Vios, on the other hand, identified another kid-oriented stock that he deemed worth its high valuation, Walt Disney Co (NYSE: DIS). Bapis said:

According to Bapis, a continuous increase in Disney Plus subscriptions and returning demand for theme parks is likely to sustain the stock’s momentum. He lauded the company’s management and also pointed out that Disney’s earnings in 2022 are likely to return to the levels seen in 2019.

Disney started the year 2021 at a per-share price of £126.88 and is currently trading at £132.11 after hitting a high of £144.10 in early March. At the time of writing, the American diversified multinational mass media and entertainment conglomerate is valued at £239.61 billion.