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On Thursday, Canaccord Genuity maintained their Buy rating and $80.00 price target on Roblox Corp . (NYSE:RBLX) stock, which currently trades at $65.31 with a market capitalization of $42.9 billion. Despite Roblox’s mixed performance in the fourth quarter, Canaccord Genuity remains optimistic about the company’s growth prospects. The gaming platform’s daily active users (DAUs) and bookings fell short of market expectations, while revenue and profitability surpassed forecasts, with impressive year-over-year revenue growth of 28%. InvestingPro analysis reveals 12 additional investment insights for RBLX, including key metrics on valuation and growth potential.
Roblox’s investments in infrastructure and the rollout of new AI tools are enhancing content creation and discovery, and the company is planning to invest further in large-scale events throughout 2025 following their previous success. The guidance for the first quarter and the full year of 2025 is generally aligned with analyst predictions, anticipating stronger bookings growth in the first half of the year before facing tougher comparisons in the latter half.
Management expressed confidence in various initiatives that could potentially drive performance improvements throughout the year. However, Roblox has decided not to provide specific advertising revenue guidance for the time being. The company is developing its advertising capabilities but does not expect ads to significantly contribute to this year’s revenue. Roblox will report ad revenue separately once it becomes a more substantial part of the business.
Following the earnings report, Roblox shares experienced a sharp decline, reflecting the market’s high expectations and some disappointment over the slower-than-anticipated progress in advertising. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. Canaccord Genuity notes that while the stock may see short-term volatility, the firm believes in Roblox’s potential for sustained growth, margin improvement, and strong cash flow, as the company continues to innovate and capture a larger share of the global gaming market spend. For deeper insights, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of Roblox’s financial health, growth prospects, and market position.
In other recent news, Roblox Corporation has been the focus of several analyst upgrades. BTIG analyst Clark Lampen adjusted the price target for Roblox shares to $73, maintaining a Buy rating. This followed Roblox’s fourth-quarter earnings report, which presented first-quarter guidance for 2025 surpassing analyst expectations, despite facing challenges with console and pre-paid gift card headwinds. Similarly, Benchmark analyst Mike Hickey increased the price target for Roblox shares to $71, reaffirming a Buy rating on the stock. The adjustment comes after Roblox exceeded its bookings guidance with a 21% year-over-year increase.
On another note, BofA Securities raised its price target on Roblox shares from $70.00 to $79.00, keeping a Buy rating. This valuation is based on a higher expected enterprise value to forecasted calendar year 2026 earnings before interest, taxes, depreciation, and amortization (EV/CY26E EBITDA) multiple. In other developments, Hindenburg Research, known for its critical reports on public companies, is disbanding, which has led to a slight rise in Roblox shares. These are the recent developments regarding Roblox Corporation, providing investors with a clear view of the company’s current standing in the market.
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