Latest news with #RBLX
CNBC
4 days ago
- Business
- CNBC
This metaverse leader is primed for even more gains going forward, Bank of America says
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%.
Yahoo
4 days ago
- Business
- Yahoo
2 Reasons to Like RBLX (and 1 Not So Much)
What a fantastic six months it's been for Roblox. Shares of the company have skyrocketed 55.3%, setting a new 52-week high of $91.51. This run-up might have investors contemplating their next move. Following the strength, is RBLX a buy right now? Or is the market overestimating its value? Find out in our full research report, it's free. Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system. As a video gaming company, Roblox generates revenue growth by expanding both the number of people playing its games as well as how much each of those players spends on (or in) their games. Over the last two years, Roblox's daily active users, a key performance metric for the company, increased by 22.1% annually to 97.8 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. EBITDA is a good way of judging operating profitability for consumer internet companies because it excludes various one-time or non-cash expenses (depreciation), providing a more standardized view of the business's profit potential. Roblox has been a well-oiled machine over the last two years. It demonstrated elite profitability for a consumer internet business, boasting an average EBITDA margin of 20.5%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Roblox's earnings losses deepened over the last three years as its EPS dropped 14.2% annually. We'll keep a close eye on the company as diminishing earnings could imply changing secular trends and preferences. Roblox has huge potential even though it has some open questions, and after the recent surge, the stock trades at 53.8× forward EV/EBITDA (or $91.51 per share). Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Reuters
5 days ago
- Business
- Reuters
Roblox down for tens of thousands of users in the US, Downdetector shows
June 3 (Reuters) - Video game maker Roblox (RBLX.N), opens new tab was down for tens of thousands of users in the U.S. on Tuesday, according to outage tracking website There were more than 99,000 incidents of people reporting issues with Roblox as of 7:27 p.m. ET, Downdetector showed.
Yahoo
24-05-2025
- Business
- Yahoo
3 Reasons to Buy Roblox Stock Like There's No Tomorrow
Shares of Roblox have soared to their highest level since 2022 amid strong growth. The company is benefiting from efforts to diversify its revenue beyond in-game virtual items. The stock has more upside as the company makes progress toward sustained profitability. 10 stocks we like better than Roblox › Shares of Roblox (NYSE: RBLX) have soared by 42% year to date and are currently trading at a three-year high as of this writing. The gaming platform is more popular than ever, leveraging its category leadership and global expansion into strong growth. Simply put, users are spending more time and money on its platform. With a path to more consistent profitability and an ongoing effort to diversify its revenue streams, Roblox should see its business continue to grow in the years ahead. Here are three reasons I believe the stock is a buy right now. Roblox is more than just a video game -- it's a platform that combines social interaction, user-created content, and community development. For Roblox, its business model centers on the Robux digital currency, which users purchase to acquire virtual items, accessories, and in-game enhancements through a robust marketplace. This model incentivizes creators to develop high-quality content, as they earn a share of Robux spending, driving a self-reinforcing cycle of engagement and monetization. In the first quarter, Roblox reported 97.8 million daily active users (DAUs), a 26% year-over-year increase, marking an acceleration from the growth in recent years. More encouraging are the signs that users are spending more time and money on the platform. Hours engaged climbed by 30%, while bookings of $1.2 billion increased by 31% from the prior-year quarter, underscoring the healthy ecosystem and Roblox's success in scaling its user base. Management expects these trends to continue, citing recent initiatives such as artificial intelligence tools available to gamers and creators proving highly popular. Metric Q1 2023 Q1 2024 Q1 2025 DAUs (in millions) 66.1 77.7 97.8 DAUs growth (YOY) 22% 17% 26% Bookings (in millions) $774 $924 $1,207 Bookings growth (YOY) 23% 19% 31% Data source: Roblox. YOY = year over year. An important development this year is Roblox's ongoing diversification of its revenue streams beyond Robux transactions, positioning itself for sustainable growth. The company has launched strategic advertising partnerships, such as with Alphabet's Google Ads, to build a robust ad ecosystem that allows brands to engage users through immersive ads without disrupting the in-game experience. Roblox is also working with Shopify to enable creators to sell physical merchandise directly within the platform, expanding the business beyond virtual goods. While still a relatively small part of the overall business, this strategy is already supporting improved margins and higher quality cash flows. International momentum is another key diversification driver, with strong growth in regions like Asia-Pacific benefiting from the availability of new languages. Roblox's focus on localized content and platform accessibility has fueled this expansion. Additionally, the platform is attracting older demographics, with 64% of engagement hours in Q1 coming from users aged 13 and up, up 40% from last year. This shift broadens Roblox's appeal beyond its traditional younger audience and positions the company for sustained long-term growth as a global leader in the metaverse space. Roblox has struggled to reach profitability since its 2021 initial public offering, prioritizing growth and its global expansion with heavy investments in research and development. Yet, it now appears the company is on the right track as the expanding business scale drives operating and financial efficiency. First-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $58 million reversed the $7 million loss in the prior-year quarter. Free cash flow of $427 million more than doubled from $191 million in the first quarter of 2024. For all of 2025, the company is targeting free cash flow between $885 million and $930 million, sharply higher than the $641 million result last year. As long as the Roblox ecosystem remains vibrant with gamers and creators, there's a clear path to profitability, making Roblox well-positioned to reward shareholders. Trading at 15 times sales and a price-to-free-cash-flow ratio of 61, Roblox is undeniably a pricey stock. Nevertheless, the market tends to appreciate companies generating hypergrowth, justifying their premium valuation. Roblox's self-reinforcing ecosystem, innovative monetization strategies, and new growth initiatives highlight what remains a significant long-term opportunity. I'm bullish and view Roblox as a great option for investors to gain exposure to an industry leader with a bright future in digital entertainment. Before you buy stock in Roblox, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Roblox wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Roblox, and Shopify. The Motley Fool has a disclosure policy. 3 Reasons to Buy Roblox Stock Like There's No Tomorrow was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
2 Unpopular Stocks that Deserve Some Love and 1 to Turn Down
Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are two stocks where Wall Street's pessimism is creating a buying opportunity and one where the skepticism is well-placed. Consensus Price Target: $58.09 (11.9% implied return) Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE:HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors. Why Does HXL Worry Us? Sales tumbled by 3.8% annually over the last five years, showing market trends are working against its favor during this cycle Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term 8 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $51.89 per share, Hexcel trades at 22.8x forward P/E. Read our free research report to see why you should think twice about including HXL in your portfolio, it's free. Consensus Price Target: $74.53 (-8% implied return) Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system. Why Do We Watch RBLX? Daily Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features Brand halo makes it a customer acquisition machine that onboards new users at scale without spending much money Excellent EBITDA margin of 20.5% highlights the efficiency of its business model Roblox is trading at $81 per share, or 47.9x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free. Consensus Price Target: $300.30 (-3.3% implied return) Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments. Why Does MEDP Stand Out? Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 17.8% over the past two years Share repurchases over the last five years enabled its annual earnings per share growth of 35.1% to outpace its revenue gains Returns on capital are climbing as management makes more lucrative bets Medpace's stock price of $310.55 implies a valuation ratio of 23.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
