Morgan Stanley says Roblox long-term bookings guidance ‘surprised to the upside’

After Roblox gave its “new and highly anticipated” long-term bookings and margin guidance during its investor day meeting yesterday, Morgan Stanley said the new long-term guidance “surprised to the upside” on bookings and came in line with expectations for margin expansion. The company also gave a clearer vision for its “next evolution,” with advertising an important next step, though key hurdles to scaling the ads business remain ahead, says the analyst, who has an Equal Weight rating and $30 price target on Roblox shares.