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On Tuesday, Benchmark analysts reaffirmed their Buy rating on Roblox Corp . (NYSE:RBLX) with a steady price target of $71.00, highlighting the company’s strategy for market share expansion as a key factor for their positive outlook. The strategy is built on three main pillars: AI-assisted creation, robust monetization, and broad user engagement. According to InvestingPro data, analyst targets for Roblox range from $30 to $83, with the stock currently trading at $56.97. The company has demonstrated strong momentum, achieving nearly 29% revenue growth in the last twelve months.
Roblox’s use of the open-source Cube 3D model is seen as a significant advantage, allowing for quicker content production and pushing the limits of what developers can create. This innovation is expected to potentially transform the creative process within the gaming industry. The platform’s growing user base, enhanced by major intellectual property collaborations, is also seen as strengthening Roblox’s competitive position in the market. With a market capitalization of $38 billion and an "FAIR" overall financial health score from InvestingPro, the company shows promising fundamentals despite current profitability challenges.
The analysts pointed out that Roblox’s high-engagement ecosystem is strategically fostered through AI-driven development, targeted advertising, and friend-based referrals. This approach not only keeps users engaged but also increases creator earnings. Roblox’s ability to support both large and small studios is considered a testament to the platform’s vitality and capacity for growth.
Benchmark’s confidence in Roblox is further bolstered by the company’s ambitious goal to capture 10% of industry content revenue. With strong payouts to developers and a commitment to AI-driven innovation, Roblox is perceived as being well-equipped to continue scaling and providing solid returns within the global gaming market. The analysts’ reiterated Buy rating and price target reflect their belief in the company’s potential for continued growth and platform vitality.
In other recent news, Roblox Corp. reported fourth-quarter results that saw net bookings align with consensus estimates and adjusted EBITDA surpassing Wall Street expectations. However, daily active users fell short of projections, and the company’s 2025 bookings guidance was slightly below analyst expectations. In response, Citi adjusted its price target for Roblox to $78 while maintaining a Buy rating, reflecting a positive long-term outlook. Meanwhile, the US Securities and Exchange Commission is actively investigating Roblox, though the specific focus of the probe remains unconfirmed.
Benchmark analysts increased their price target for Roblox to $71, citing strong December growth in mobile and desktop bookings. Needham analysts also raised their price target to $72, maintaining a Buy rating but expressing caution about medium-term margin expansion. Despite these adjustments, Needham remains optimistic about Roblox’s long-term growth potential. Oppenheimer maintained a Perform rating after Roblox’s robust fourth-quarter performance, noting significant growth in daily active users, particularly in Japan and India. The company’s bookings rose by 21% to $1.36 billion, with free cash flow jumping 54% to $120 million, driven by improved monetization and operational efficiency.
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