Key Stats for Roblox Stock
- Price Change: +9.7%
- Current Price: ~$66
- Street Mean Target: $114
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What Happened?
Shares of Roblox Corporation (RBLX) surged 9.7% to close near $66 on Friday, driven by a “blockbuster” earnings report that validated the company’s long-term strategy to expand beyond its core child demographic.
The key catalyst was the revelation that for the first time in history, users over the age of 13 now account for the majority of engagement on the platform.
This demographic shift fueled a 20% year-over-year jump in bookings to $1.13 billion, comfortably beating analyst expectations of $1.08 billion.
During the earnings call, CEO David Baszucki highlighted that the 17-24 age group is growing faster than any other cohort
This provesthat Roblox is successfully evolving into a social utility for young adults.
The rally was further supported by strong guidance for 2026, with management forecasting revenue growth of 20-22% for the full year, signaling that the business has reached an inflection point in profitability.
Analysts at Morgan Stanley praised the results, noting that the “aging up” of the user base unlocks a massive new addressable market for brand advertising, which carries significantly higher margins than virtual goods.
The combination of demographic maturity and accelerating ad revenue has shifted the narrative from “pandemic darling” to “sustainable growth compounder.”
See analysts’ growth forecasts and price targets for Roblox stock (It’s free!) >>>
Is Roblox Undervalued Today?
During the earnings call, CEO David Baszucki explained why the shift to an older demographic is so transformative for the business model.
He stated: “We’ve crossed the Rubicon… Over half of the hours on Roblox are now from people 13 and older. This changes the economics of our developer community and opens the door to real-world brands in a way that wasn’t possible before.”
Baszucki emphasized that these older users monetize at higher rates and are more likely to engage with the platform’s burgeoning advertising ecosystem.
CFO Naveen Chopra added specific color on the financial impact, noting: “We are seeing leverage in our infrastructure and trust & safety spend… effectively, we are growing the top line faster than our fixed costs, which is driving the margin expansion you see today.”
Read the full Roblox Transcript on TIKR to see the 2026 Roadmap >>>
According to the Street Consensus on TIKR, the market is severely underestimating the duration of this growth cycle.
- Street Target Price: $114
- Current Price: ~$66
- Potential Upside: +72.2%
Valuation Deep Dive
The investment case for Roblox pivots on its ability to replicate the “YouTube model” for 3D content.
With the stock trading at ~$66, it is valued at a fraction of its 2021 highs, yet the fundamental business is larger and more diversified than ever.
- The Ad Opportunity: As the user base ages, Roblox becomes a prime destination for advertisers targeting Gen Z, a revenue stream that is 100% margin accretive.
- The Network Effect: The more older users join, the more developers build “aged-up” content, creating a flywheel that competitors cannot easily replicate.
- The Value Gap: The $114 target implies that as Roblox proves it can generate consistent free cash flow, its multiple will re-rate to align with other high-growth platform stocks.
If Roblox can continue to grow its 17-24 demographic at current rates, the path to $114 is paved by both user growth and increasing average revenue per daily active user (ARPDAU).
Conclusion: Not just for kids anymore. With a 72.2% upside potential to $114, Roblox offers a high-risk, high-reward opportunity for investors who believe the metaverse is evolving into a sustainable social utility for all ages.
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How Much Upside Does Roblox Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
