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Investing.com - Goldman Sachs has reiterated its Neutral rating and $155.00 price target on Roblox Corp. (NYSE:RBLX) following the company’s recent earnings report. The target represents 30% upside from the current price of $119.42, though analyst targets range widely from $65 to $180. According to InvestingPro data, the stock appears overvalued compared to its Fair Value estimate.
The firm noted that investors would likely react positively to the earnings results, which showed broad-based beats on total bookings, daily active users (DAUs), and adjusted EBITDA compared to both Goldman Sachs and Street estimates. This performance aligns with Roblox’s impressive 27.39% revenue growth over the last twelve months, with total revenue reaching $4.02 billion.
Goldman Sachs highlighted several key momentum-building themes from Roblox’s shareholder letter, including strong user growth with older users (O13 DAUs) increasing 89% year-over-year and viral content success with titles like "Steal a Brainrot" and "99 Nights in the Forest." This user expansion has contributed to Roblox’s impressive 48% five-year revenue CAGR, with analysts forecasting 68% revenue growth for fiscal year 2025.
The firm indicated that management’s commentary about 2026 aligned with investor expectations, including reiterating its goal of capturing 10% of the gaming industry while acknowledging tougher comparisons from 2025 and prioritizing growth investments over near-term margin optimization. Roblox’s strong balance sheet positions it well for these investments, with InvestingPro data showing the company holds more cash than debt and maintains a very low total debt to capital ratio of just 0.02.
Goldman Sachs also noted that recent data suggests Roblox is becoming less dependent on hit-driven content, which the firm described as "the hallmark of most media/Internet platforms scaling into sustained compounded performance." With a market capitalization of $82 billion and trading at a Price to Book ratio of 264.64, investors are paying a premium for Roblox’s growth potential. For deeper insights into Roblox’s financials and growth prospects, InvestingPro offers comprehensive research reports with expert analysis on what really matters for this high-growth tech stock.
In other recent news, Roblox Corp . has been the subject of significant developments. The company has faced criminal subpoenas from the Florida Attorney General, who accused Roblox of failing to protect children on its platform. Additionally, Iraq has implemented a nationwide ban on Roblox due to concerns about child safety and potential exploitation. On the financial front, Jefferies raised its price target for Roblox to $130, citing strong bookings growth in the third quarter of 2025. However, the firm maintained a Hold rating, suggesting that further growth could be necessary for increased investor enthusiasm. Piper Sandler reiterated its Overweight rating, highlighting improvements in content discovery on the platform. Similarly, Oppenheimer maintained an Outperform rating, noting significant growth driven by new games despite some volatility in player engagement. These developments underscore the complex landscape Roblox navigates, balancing growth opportunities with ongoing safety and regulatory challenges.
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