Key Stats for Roblox Stock
- 1- Year Price change for Roblox stock: 13%
- $RBLX Share Price as of Feb. 9: $73
- 52-Week High: $150
- $RBLX Stock Price Target: $113
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What Happened?
Roblox (RBLX) stock jumped over 10% on Monday after Roth upgraded the gaming platform to “Buy” from “Neutral”, citing strong momentum with older users and improving platform quality.
The upgrade came days after Roblox reported blockbuster fourth-quarter results that crushed Wall Street expectations.
The investment firm raised its price target to $84 from $78, implying more than 26% upside from Friday’s close.
Roth analyst Eric Handler noted Roblox’s success in attracting adult players, with users aged 18 and older up 50% year over year.
“We are increasingly appreciative of the underlying mechanics of the platform having created a strong, sustainable virtuous circle where continuously improving creator/development tools are producing higher quality games, which enhances the user experience, and drives higher engagement,” Handler wrote in a note to clients.
The enthusiasm follows Roblox’s impressive fourth-quarter earnings report last Thursday.
- The company posted bookings of $2.22 billion, crushing analyst estimates of $2.05 billion. That represents 63% growth from a year ago.
- Roblox also reported 144 million daily active users in the quarter, well above the 138 million analysts expected.
Perhaps most important for the platform’s long-term growth, Roblox reported that its mandatory age-verification rollout has shown that the 18-and-over demographic is expanding rapidly.
CEO David Baszucki said this older cohort now monetizes 40% higher than younger users and is growing at over 50% annually.
“We estimate our 18 and over cohort is growing at over 50%, and this cohort monetizes 40% higher than younger cohorts,” Baszucki said on the earnings call.
The company also announced it will discontinue annual guidance starting in 2027, citing the unpredictable nature of viral hits on its platform.
For the first quarter, Roblox expects bookings between $1.69 billion and $1.74 billion, above Wall Street’s $1.68 billion estimate.
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What the Market Is Telling Us About Roblox Stock
Despite Roblox stock being down more than 50% from 52-week highs, investors are growing more confident in the platform’s ability to expand beyond its core young audience.
The mandatory age-verification program, while creating short-term headwinds for engagement, is revealing significant opportunities.
Roblox said age checking has caused “a mid-single-digit headwind to engagement growth and a low-single-digit headwind to bookings growth.”
But the company believes the strategic benefits far outweigh these temporary impacts. The age data shows 27% of daily users are over 18, 38% are between 13 and 17, and 35% are under 13.
Management is investing heavily in new features to attract and retain older players, including improved graphics, server authority for competitive gaming, and custom matchmaking.
Roblox is also leveraging AI across the platform, running over 400 AI models for everything from content discovery to safety monitoring.
Roth’s upgrade reflects growing conviction that Roblox can successfully age up its user base while maintaining its position as a leader in online safety.
With strong free cash flow growth expected in 2026 and bookings guidance of 22% to 26% for the year, Roblox stock could have significant upside if the company delivers on its expansion plans.
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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!
