Roblox (NYSE:RBLX) shares have staged an impressive rally over the past few weeks amid a slew of positives. The online immersive platform’s share price has increased to nearly $38 from September lows of about $25.
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This rise comes after the company’s recent third-quarter performance was marked by healthy user growth and a 20% jump in bookings. Additionally, a 20% increase in the company’s number of average daily active users (DAU) was accompanied by a similar increase in the volume of hours engaged on its platform to 16 billion. This growth was seen across all age groups and geographies.
Moreover, margin expansion is anticipated over the coming periods as Roblox slows spending in major expense categories while investing in AI and deeper forms of expression on its platform.
Impressively, Roblox ranks fourth in U.S. monthly active users across all titles on PlayStation 5, according to Circana’s Player Engagement Tracker. Additionally, investors were impressed with the company’s recent new guidance.
What is the Forecast for RBLX Stock?
Driven by these positives, the stock has also garnered positive reactions from analysts. Needham’s Bernie McTernan has reiterated a Buy rating on Roblox alongside a $51 price target. Piper Sandler’s Thomas Champion, too, has assigned the stock a Buy rating with a $52 price target, pegging the potential upside in the stock at nearly 37.5%.
Still, overall, the Street has a Moderate Buy consensus rating on Roblox. The average RBLX price target of $41.74 per share points to a 10.4% potential upside in the stock.
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