Roblox revenue could benefit from generative AI boom, says DA Davidson

DA Davidson analyst Franco Granda keeps a Buy rating and $55 price target on Roblox but notes that as the recent boom in generative AI gains traction, the company’s implementation of this technology could bolster its revenue outlook by over 5% in 2024. The firm adds that while it is reducing its Street-high numbers to adjust to current spending patterns, it also believes that the consensus profitability estimate appears low.