Roblox (NASDAQ:RBLX) has made quite a name for itself, going from just a game to its own platform to a potential expression of cryptocurrency, artificial intelligence, and more. Today, however, showed just how volatile Roblox can be. Analysts gave good reports about Roblox’s likely future, but investors fled for the doors, sending share prices down substantially at the time of writing.
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Word out of BTIG, by way of analyst Clark Lampen, noted that Roblox’s recent adoption of AI is likely sufficient to give Roblox a leg up when it comes to earnings season. In fact, Lampen thought enough of such moves that he hiked second-quarter earnings from $34.1 million to $44.1 million. Lampen also hiked full-year 2024 bookings forecasts from $4.226 billion to $4.307 billion. While there will be some slowdown in growth, Lampen notes, monetization will improve and help fill some of the gaps caused by a reduction in new users.
So what are some of those advances that Lampen seems so excited about? One major advance is in character generation, notes a report from GG. Not only is Roblox putting it to use, but so are Activision-Blizzard (NASDAQ:ATVI) and Ubisoft (OTHEROTC:UBSFY). With character creation—an element of game development commonly regarded as “tedious”—automated, processes can be sped up, and more games can be put out. Roblox also may be making inroads with Sony (NYSE:SONY), getting the game on PlayStation after Sony dialed back a few policies.
Is RBLX a Buy Right Now?
Roblox stock does enjoy quite a bit of analyst support at present. It’s considered a Moderate Buy thanks to 11 Buys, four Holds, and three Sells. Further, with an average price target of $43.67, Roblox stock also offers a decent upside potential of 9.5%.
