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Investing.com - Needham has reiterated its Buy rating and $159.00 price target on Roblox Corp. (NYSE:RBLX), which has seen its stock surge 192.6% over the past year, following the Roblox Developer’s Conference last week. The company, now valued at $88.52 billion, sits within analysts’ broad target range of $62 to $175.
The research firm highlighted four key takeaways from the well-attended event, starting with Roblox’s Friday launch of "Moments," described as the next evolution of search and discovery. Needham views this new product as potentially transformational for engagement and in-app purchases in the near term, with advertising benefits over time. The platform has demonstrated strong momentum, with revenue growing 27.39% over the last twelve months.
Roblox will enable experiences to advertise off-site for the first time, which Needham believes could represent the platform’s first substantial push to bring customers onto the platform. The firm suggests this could eventually expand the total addressable market for the mobile gaming acquisition market.
Needham noted that developer expenses are increasing, but indicated these costs were already contemplated in Roblox’s guidance as the company further invests in its content flywheel.
The research firm also pointed out that Roblox continues to improve its underlying platform, which Needham describes as the backbone enabling the impressive growth seen this year.
In other recent news, Roblox Corporation announced a strategic partnership with the International Age Rating Coalition to implement standardized content ratings across its platform. This integration will replace Roblox’s existing content maturity labels with region-specific ratings from recognized authorities such as the Entertainment Software Rating Board in the United States. Additionally, BMO Capital reiterated its Outperform rating for Roblox, citing accelerated user engagement in the third quarter of 2025, with a significant year-over-year growth in average daily peak concurrent users. Oppenheimer also maintained its Outperform rating and hosted an online investor meeting with a prominent game streamer, highlighting continued support for the platform. Wedbush echoed this sentiment, describing Roblox as a compelling growth opportunity in the video game sector and noting the company’s swift response to child safety concerns. Meanwhile, TD Cowen raised its price target for Roblox to $77 from $54, despite maintaining a Sell rating, acknowledging shifts in engagement dynamics that have benefited growth. These developments underscore Roblox’s ongoing efforts to enhance user experience and address safety concerns while attracting positive attention from several investment firms.
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