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On Tuesday, Oppenheimer’s analysts maintained a Perform rating for Roblox Corp . (NYSE:RBLX), now valued at $40.8 billion, following a successful second weekend of "The Hunt: Mega Edition" event, which saw a notable increase in user engagement. According to InvestingPro data, the company’s stock has surged 9.3% in the past week, reflecting strong market confidence. The event’s concurrent user trends demonstrated heightened activity, surpassing both the prior week and the equivalent event from the previous year.
"The Hunt: Mega Edition" recorded average concurrent users (CCUs) of 9.1 million on Friday, 12.1 million on Saturday, and 12.5 million on Sunday. These figures represent increases of 39%, 35%, and 37% respectively compared to the same days during last year’s event. The growth is not only a reflection of the event’s popularity but also indicative of the platform’s overall expansion, with a 27% year-over-year growth in average CCUs over the last twelve months. This user growth has translated into strong financial performance, with revenue growing 28.7% over the last twelve months.
The weekend’s performance also showed an average week-over-week growth of 1%, a stark contrast to the 4% decline observed during the same weekend of the previous year’s event. This positive trend suggests a sustained interest in "The Hunt: Mega Edition," which analysts predict will contribute to a robust growth in bookings for the first quarter and a month-over-month acceleration in March.
Looking ahead, the focus shifts to "The Hunt: Mega Final" scheduled for April 4, where finalists will compete for a $1 million prize. The event is expected to generate another surge in platform engagement, providing an opportunity to gauge the ongoing momentum of Roblox’s user activity. InvestingPro analysis shows that 4 analysts have recently revised their earnings expectations upward, suggesting growing confidence in the company’s trajectory. For deeper insights into Roblox’s financial health and growth potential, including 8 additional ProTips and comprehensive valuation metrics, check out the full Pro Research Report.
In other recent news, Roblox Corp. has been under active investigation by the US Securities and Exchange Commission (SEC), as confirmed by Bloomberg News. The specifics of the investigation remain undisclosed, but the SEC has acknowledged the existence of related internal communications. Meanwhile, Roblox’s financial performance has been a focal point for analysts. Citi analysts revised their price target for Roblox to $78, down from $82, while maintaining a Buy rating. This adjustment follows the company’s fourth-quarter results, which met net bookings estimates and exceeded adjusted EBITDA expectations, although daily active users fell short of projections.
Benchmark analysts also reaffirmed their Buy rating, raising the price target from $60 to $71, citing robust growth in mobile and desktop bookings. Needham increased their price target to $72, maintaining a Buy rating, despite noting a slowdown in bookings growth. Both Benchmark and Needham highlighted Roblox’s strategic goals, including capturing a significant share of the global gaming content market. These developments reflect a mixed but generally optimistic outlook from analysts regarding Roblox’s future financial trajectory and market position.
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