Latest news with #digitaluniverse
Yahoo
28-07-2025
- Business
- Yahoo
Is Roblox Stock a Buy, Sell, or Hold for July 2025?
Once just a pixelated playground for kids, Roblox (RBLX) has grown into a full-blown digital universe where users play, build, and monetize their own worlds. Known for its build-it-yourself worlds and massive Gen Z following, the company has leveled up big time in 2025. Shares of Roblox are up 105% so far this year and just hit a fresh high of $127.99 on July 21. A licensing wave brought Netflix (NFLX) and Sega into the mix, while developers cashed in like never before. More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Two viral games — 'Grow a Garden' and the spooky hit '99 Nights in the Forest' — are stealing the spotlight. The latter has racked up over 200 million visits since March and ranks high on both trending and top-earning charts. Meanwhile, "Grow a Garden" is attracting advertisers despite not running ads yet. That says something about Roblox's untapped ad potential. Roblox has been riding high on market optimism, with some analysts bullish on its long-term potential. However, the stock's high valuation raises concerns, and RBLX broke its winning streak last week with a pullback. So, is this just a minor blip and a chance for investors to snag shares? Or is it time for a reality check? About Roblox Stock San Mateo, California based Roblox started out in 2004 as an ambitious bet, less about building games and more about building the builders. Instead of designing games, Roblox gave players the tools to create their own 3D worlds through Roblox Studio and monetize them using Robux, its in-game currency. This model flipped the script on traditional gaming — creators became the core of the business. The company's infrastructure, anchored by Roblox Cloud, powers immersive experiences that blend gameplay with social connection, stretching far beyond U.S. borders into a global phenomenon. With a market capitalization of $80 billion, Roblox's strategic ad deals with Google (GOOGL), merchandise drops via Shopify (SHOP), and rising global footprint are sharpening its edge. And it's not stopping there — more users, more creators, and deeper monetization are the name of the game. Over the past 52 weeks, Roblox stock has surged 193%. Shares are up 78% in just three months as well. RBLX hit a fresh 52-week high on July 21 before paring back some of the gains. Roblox's sharp rally has pushed its valuation into elevated territory. With RBLX stock now priced at 22 times forward sales and 64 times forward cash flow, it's wearing a premium price tag — flashy, no doubt, but making some wonder whether this high-flying gamer's getting a little too rich. Roblox's Q1 Revenue Jumps, Losses Narrow Roblox came out swinging in 2025, with its first-quarter earnings report released on May 1 reigniting bullish momentum and sending the stock back into rally mode. The gaming platform generated $1.04 billion in revenue, a 29% jump year-over-year (YOY), outpacing both its own prior pace and Wall Street's expectations. Though still in the red, the bottom line showed resilience. Loss per share narrowed to $0.32 from $0.43 a year earlier, coming in better than what the Street anticipated and signaling tighter cost discipline even as the platform continues to scale aggressively. Bookings, the real gauge of platform momentum, surged 31% to $1.2 billion, blowing past consensus. The platform's core health looked even stronger beneath the surface — daily active users (DAUs) rose 26% annually to 97.8 million, monthly unique users climbed 29%, and engagement jumped another 30% YOY. Bookings per player increased 4%, showing that Roblox isn't just growing bigger but also more efficient. Then came the outlook, which didn't disappoint. Management raised full-year guidance off the back of Q1's outperformance, calling for revenue between $4.29 billion and $4.365 billion. Bookings are estimated to be between $5.285 billion and $5.36 billion. Finally, adjusted EBITDA is expected to come somewhere between $205 million and $265 million. The company is all set to deliver its Q2 earnings report on Thursday, July 31, before the market opens. Revenue is estimated to be between $1.02 billion and $1.045 billion, while bookings are expected to be somewhere between $1.165 billion and $1.19 billion. If Q2 delivers even close to Q1's strength, another guidance bump could be in the cards, and RBLX stock may just keep riding that uptrend. Analysts tracking Roblox expect the company to trim its fiscal 2025 losses by 1.4% YOY to -$1.42 per share. It's then on track to tighten losses further to -$1.08 per share in 2026, a 24% improvement. What Do Analysts Expect for Roblox Stock? JPMorgan raised its RBLX stock price target to $125 from $120, keeping an 'Overweight' rating. However, this was not just a routine lift, but a reflection of serious momentum. Analyst Cory Carpenter pointed to surging engagement. Roblox hit a record 32 million concurrent users. That kind of traffic isn't just noise, but translates into business. The analyst now expects Q2 bookings growth to rocket 37%, with 30% gains for fiscal 2025, both blowing past Roblox's own guidance. Meanwhile, BMO Capital also bumped up its price target to $135 from $95, while sticking with its 'Outperform' rating. But this was not just a hunch. It followed the firm's deep dive into Roblox's breakout hit, 'Grow a Garden,' which smashed records with 21.9 million concurrent users on July 19. What caught BMO's eye was the potential for monetization. Analyst Brian Pitz sees 'Grow a Garden' not just driving traffic but turning it into serious cash — maybe even outperforming Roblox's top-grossing titles. That optimism led the analyst to hike Roblox's 2025 and 2026 bookings estimates again — up another 3.2% and 3.5%, respectively — on top of earlier boosts. Wall Street's take on RBLX stock is leaning bullish, but with a cautious grip. The stock has a consensus 'Moderate Buy' overall. Out of 25 analysts covering the stock, 15 advise a 'Strong Buy,' showing clear confidence in the gaming platform's momentum. Two analysts suggest a 'Moderate Buy' rating, while six stay on the fence with a 'Hold.' But it's not all green lights. Two analysts are waving the red flag with a 'Strong Sell" rating, suggesting that there's still some skepticism in the crowd. RBLX stock currently trades above the average analyst price target. However, the Street-high target of $152 suggests that shares could rally 28% from here. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
Khaleej Times
28-07-2025
- Entertainment
- Khaleej Times
How Sharjah's children are using AI to rewrite 1,500-year-old fables
Forget bedtime stories at House of Wisdom's summer camp in Sharjah , the next generation is using AI to build them from the ground up. AI-powered storytelling is the new frontier, and children are transforming ancient animal fables of Kalila wa Dimna into a vibrant digital universe of their own making, complete with custom animations, synthesised voices, and even holographic projections. Based on the enthusiastic response from participants and parents, the House of Wisdom is exploring significant expansion, including specialised AI-focused workshops in game design, animation, and interactive fiction. Plans also include extending the programme across more age groups with tiered levels for different skill sets. Stay up to date with the latest news. Follow KT on WhatsApp Channels. The camp is bridging Arab heritage with cutting-edge technology, inspiring youth through the wisdom and stories of their cultural past while introducing them to the potential of artificial intelligence. The programme centers on Kalila wa Dimna, the 1,500-year-old masterpiece of Arabic literature, allowing young participants to honor its narratives and lessons while igniting its relevance for today's generation. The AI-powered tools enable youth to repackage and reinterpret cultural content in creative and exciting ways, giving them the power to reimagine these ancient fables while learning new skills through generative technologies. The summer camp integrates a diverse suite of industry-leading AI tools, ensuring there is something for everybody while providing opportunities to discover new passions and skills. For text and narrative innovation, children learn to use large anguage models such as ChatGPT to reimagine plots and craft scripts, poems, and alternate versions of the legendary tales. Visual storytelling comes alive through tools like Adobe Firefly, Canva's AI design suite, and RunwayML, enabling students to generate animations and story reels from text prompts. Audio design utilises ElevenLabs to synthesise character voices and soundscapes, while platforms like Book Creator and Google Slides compile all elements into interactive digital books. The experience culminates with holographic projectors and Augmented/Virtual Reality tools that transform student creations into immersive exhibits for the camp's digital kiosk showcase, merging physical and digital creativity. AI has provided an accessible and inspirational way to explore storytelling by transforming young learners from passive listeners into confident creators. Students who might struggle with traditional art can generate vivid illustrations and animations, while LLMs help them rework ancient fables into personally meaningful narratives. The multi-sensory approach, blending text, visuals, sound, and interactive elements, deepens engagement with cultural heritage. Children can hear their version of Dimna the jackal speak in a synthesised voice or experience AI-generated music accompanying their digital storybooks. Adapting to AI One of the most surprising outcomes has been how quickly and deeply children adapted to using AI tools in storytelling. Beyond technical proficiency, participants formed unique and personal connections to the ancient tales, collaboratively reimagining traditional narratives with modern technology, often blending genres or adding culturally resonant twists. Young participants expressed genuine excitement about their experiences. 'Yes! It was so cool to see the stories I imagined come to life with pictures and voices,' shared one student. Another added, 'Definitely! I want to make my own game or cartoon using AI next time.' Parents have embraced the programme enthusiastically. 'I was looking for a programme that combined creativity and technology. This camp felt like the perfect balance,' explained one parent. Another noted, 'AI is the future, and introducing it in a creative and guided way like this helps children learn without fear or pressure.' 'He comes home every day excited to tell us what he created. That says a lot!' shared a parents. Parents have recognised the broader benefits. 'It builds confidence, curiosity, and digital literacy — all essential for tomorrow's world.' 'At House of Wisdom, we believe the true legacy of culture lies not just in preserving knowledge, but in passing it forward in ways that empower new generations to build upon it,' said Marwa Al Aqroubi, Executive Director of House of Wisdom. She added, 'Our AI-powered summer camp was designed to help children shift from passive consumers to active creators, equipping them with the tools and confidence to reimagine timeless stories through the lens of emerging technologies.'
