Markets

Roblox Gains Two Bulls. It’s in the ‘Sweet Spot’ to Benefit From Generative AI.

1 Mins read

Roblox
shares were rising Friday after the video-game platform gained support from Wall Street ahead of earnings.

Truist Securities analyst Matthew Thornton upgraded
Roblox
(ticker: RBLX) to Buy from Hold and raised his price target to $37 from $35.

Shares of Roblox were up 3.3% to $31.56 on Friday.

Thornton said he thinks Roblox can turn in adjusted earnings before interest, tax, depreciation, and amortization 20% above estimates in 2025, achievable through a list of factors including the core business, immersive advertising, and new platforms.

Raymond James analysts led by Andrew Marok also were upbeat about the company, initiating coverage at Strong Buy with a price target of $41. The team highlighted multiple opportunities for long-term growth and also made mention of artificial intelligence.

“Roblox exists in the sweet spot for companies who can benefit from Generative AI, namely 1) it operates a software development
platform that 2) relies heavily on creative inputs to make content,” they wrote.

The company is expected to post third-quarter results on Nov. 8, and host an investor day on Nov. 15.

Thornton said third-quarter estimates were reasonable. “While RBLX does not provide guidance, we expect 4Q to benefit from normal seasonality as well as scaling advertising and the 10/10 launch on PlayStation,” he added.

Analysts overall are bullish on the stock with 66% rating it Buy, according to FactSet.

Write to Emily Dattilo at [email protected]

Read the full article here

Related posts
Markets

Options traders are bracing for a stock-market crash

1 Mins read
Last Updated: March 3, 2025 at 5:24 p.m. ETFirst Published: March 3, 2025 at 12:50 p.m. ET Options traders are bracing for a looming…
Markets

Why bitcoin bulls aren’t happy about Trump’s plans for something they’ve long wanted: a crypto reserve

1 Mins read
Published: March 3, 2025 at 5:34 p.m. ET A backlash over President Donald Trump’s plan to include three small and relatively risky tokens…
Markets

U.S. stocks are being trounced by Europe as Trump retreats from Ukraine, focuses on ‘America First’

1 Mins read
Last Updated: March 3, 2025 at 7:13 p.m. ETFirst Published: March 3, 2025 at 6:16 p.m. ET It might go down in history as…
Get The Latest News

Subscribe to get the top fintech and
finance news and updates.

Leave a Reply

Your email address will not be published. Required fields are marked *