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On Thursday, JPMorgan analyst Cory Carpenter adjusted the financial outlook for Roblox Corp . (NYSE: NYSE:RBLX), increasing the price target to $80 from the previous $75, while reaffirming an Overweight rating on the shares. The revision followed Roblox’s first-quarter earnings report, which surpassed expectations and prompted the company to enhance its 2025 financial projections. According to InvestingPro data, Roblox shares are trading near their 52-week high of $75.74, with the stock showing remarkable momentum, gaining over 83% in the past year. The company’s market capitalization now stands at approximately $47 billion.
Roblox reported year-over-year bookings growth of 31%, outperforming management’s guidance of 22-24% and aligning with investor expectations of approximately 30%. Additionally, the company’s 2025 bookings guidance was raised from 20% to 22%. The growth was widespread, with Daily Active Users (DAUs) accelerating across various regions, including a 22% year-over-year increase in the United States & Canada.
The company demonstrated progress in expanding its game genres, with spending on RPGs, sports, racing, and shooters climbing 69% year-over-year, accounting for 20% of total bookings. The majority of the DAU growth was driven by users over the age of 13. Despite limited discussion on macroeconomic factors, Carpenter noted that Roblox has not yet seen any impact, and the revised 2025 outlook might accommodate potential macro weakness.
The update on Roblox’s advertising efforts was described as underwhelming, attributed to the ongoing Google (NASDAQ:GOOGL) integration and management’s cautious management of expectations. However, Carpenter suggested that the conservative 2025 outlook could leave room for advertising to become a source of upside in the second half of the year, and expressed optimism for the company’s medium-term advertising opportunities. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with technical indicators suggesting overbought conditions. Investors seeking detailed insights can access the comprehensive Pro Research Report, which covers Roblox among 1,400+ top US stocks, providing in-depth analysis of valuation metrics and growth potential.
At the time of the report, Roblox shares had risen only 2%, in contrast to the Nasdaq’s 2% increase, which Carpenter attributed to high investor expectations for first-quarter bookings and the company’s decision to reinvest some of its financial gains in the second half of the year. As a result of the earnings report, JPMorgan has raised its 2025 bookings estimate by 1%, its 2025 adjusted EBITDA by 1%, and its 2025 free cash flow projections by 7%. Carpenter mentioned that although JPMorgan had already adjusted its estimates above guidance prior to the earnings release, their revisions might still be conservative compared to other analysts’ post-earnings adjustments. The Overweight rating was reiterated to reflect continued confidence in Roblox’s performance.
In other recent news, Roblox Corporation reported strong financial results for Q1 2025, with revenue reaching $1.21 billion, surpassing the forecasted $1.14 billion. Bookings also exceeded expectations at $1.207 billion, contributing to a positive outlook from analysts. BTIG maintained a Buy rating with a $73 price target, highlighting the company’s effective cost management and increased daily active users. Similarly, Benchmark raised its price target for Roblox to $77, citing strategic initiatives like AI-driven content discovery and immersive advertising as key growth drivers. Despite a negative EPS of -$0.32, it was better than the projected -$0.40, indicating improved financial management. The company has updated its full-year bookings and Adjusted EBITDA guidance, positioning them slightly above current forecasts. Analysts from BTIG and Benchmark emphasized Roblox’s potential for continued growth, particularly in advertising and passive monetization. These developments reflect confidence in Roblox’s strategic direction and its ability to capitalize on its expanding user base.
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