logo
This metaverse leader is primed for even more gains going forward, Bank of America says

This metaverse leader is primed for even more gains going forward, Bank of America says

CNBC5 days ago

Roblox has "structural advantages" that can drive the stock higher, according to Bank of America. The bank upped its price target on the online game platform to $103 per share from $86 and reiterated its buy rating. BofA's forecast calls for roughly 13% upside from Wednesday's close. "We expect to see talent and capital flow into the RBLX ecosystem faster than mobile app & console games for the foreseeable future," analyst Omar Dessouky wrote in a Wednesday note. "The string of strong results and share price rally appears to have catalyzed interest among new long-term oriented growth investors." RBLX YTD mountain Roblox stock in 2025. Dessouky highlighted the company's efforts within the metaverse, which he said could be a significant growth driver as adoption of the company's platform expands. "RBLX is the 'Metaverse' category leader," Dessouky said. "We see an extended runway for mid-20% growth as users worldwide adopt Roblox's Metaverse, in a virtuous cycle that will draw developers, brands, and merchants to the platform." "Roblox is not saddled with legacy media businesses that require transition to a Metaverse, and can thus allocate 100% of its resources toward maintaining Metaverse product leadership," the analyst added. "Rapid productization of innovations could result in consistent upside to growth estimates." Shares have surged more than 57% in 2025. Most analysts covering Roblox have a buy or strong buy rating, according to LSEG. However, the average price target implies downside of more than 18%.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Roblox taps Paramount's Naveen Chopra as new CFO
Roblox taps Paramount's Naveen Chopra as new CFO

Los Angeles Times

time10 hours ago

  • Los Angeles Times

Roblox taps Paramount's Naveen Chopra as new CFO

Roblox Corp. tapped Paramount Global's Naveen Chopra as its new chief financial officer, effective June 30. 'Naveen's experience as CFO at leading companies equips him with invaluable financial and strategic acumen to foster Roblox's growth,' Roblox Chief Executive Officer and co-founder Dave Baszucki said in a statement. Chopra, whose departure as CFO of Paramount was simultaneously announced, has also held top positions at Inc., in its devices and services business, and as CFO at Pandora and Tivo Corp. Last year, Roblox's longtime CFO Michael Guthrie announced plans to step down. He has led the 20-year-old creative video game company as it went public in 2021 and helped boost revenue 89% since then to $3.6 billion at the end of 2024. This year, Roblox has drawn record crowds to its fastest-growing game ever, Grow a Garden. Guthrie will remain CFO at Roblox until June 30 and then serve as a consultant to ensure a smooth transition, the company said. D'Anastasio writes for Bloomberg.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store