Roblox news today: Roblox stock (RBLX) rose more than 2% on Friday after a top analyst at Wolfe Research, Shweta Khajuria, upgraded the gaming platform's stock from 'Hold' to 'Buy' and set a new price target of $150, as per a report.
Khajuria, who is among the highest-rated analysts tracked by TipRanks, turned positive on the online gaming platform, pointing to stronger performance from regional pricing strategies and new advertising opportunities as key drivers of growth, according to the TipRanks report.
The Wall Street analyst now expects Roblox to benefit from what she calls “platform flywheel effects,” including improvements in search, discovery, and faster content creation, according to the report. She also sees the company gaining from pricing optimizations such as regional and differential pricing, as well as in-app strategies, as per the TipRanks report.
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Advertising, which Khajuria described as “still very nascent,” is seen as another promising area for Roblox, according to the report. For fiscal 2026, she forecasts that regional pricing will bring in $318 million in additional bookings, while ad revenue is projected to contribute about $300 million in incremental gross revenue or bookings, as reported by TipRanks.
The analyst's updated projections for 2026 bookings and EBITDA are now 9% and 8% higher than Wall Street’s average expectations, according to the report.
The lawsuit has led RBLX stock to fall nearly 16% since its all-time closing high on July 31, Barrons reported, citing Dow Jones Market Data.
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She said, “We believe Roblox has a long runway for durable growth from low penetration in an attainable, large gaming [market],” adding, “Roblox is one of the fastest growing businesses in our coverage, and we see potential for meaningful margin expansion,” as quoted in the report.
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Why did Roblox stock go up recently?
Because a top analyst upgraded it to 'Buy' and raised the price target to $150.
Who upgraded Roblox’s stock?
Shweta Khajuria from Wolfe Research, a highly rated analyst on TipRanks.
Khajuria, who is among the highest-rated analysts tracked by TipRanks, turned positive on the online gaming platform, pointing to stronger performance from regional pricing strategies and new advertising opportunities as key drivers of growth, according to the TipRanks report.
Wall Street Analyst Raises Roblox Earnings Forecast For Fiscal Year 2026
According to Khajuria, her revised estimates for Roblox’s fiscal 2026 bookings and EBITDA (earnings before interest, tax, depreciation, and amortization) are now up by 7% and 13%, respectively, as per the report. She highlighted that regional pricing and advertising are expected to fuel this growth, as reported by TipRanks.The Wall Street analyst now expects Roblox to benefit from what she calls “platform flywheel effects,” including improvements in search, discovery, and faster content creation, according to the report. She also sees the company gaining from pricing optimizations such as regional and differential pricing, as well as in-app strategies, as per the TipRanks report.
ALSO READ: Apple quietly fixes the most annoying AirPods problem with this hidden iPhone update
Advertising, which Khajuria described as “still very nascent,” is seen as another promising area for Roblox, according to the report. For fiscal 2026, she forecasts that regional pricing will bring in $318 million in additional bookings, while ad revenue is projected to contribute about $300 million in incremental gross revenue or bookings, as reported by TipRanks.
The analyst's updated projections for 2026 bookings and EBITDA are now 9% and 8% higher than Wall Street’s average expectations, according to the report.
Louisiana Lawsuit Raises Safety Concerns for Roblox Users
Her stock upgrade comes after the State of Louisiana sued Roblox in August, alleging that the firm has allowed child predators to abuse its platform, whose users are mostly under 18, as reported by Barrons.The lawsuit has led RBLX stock to fall nearly 16% since its all-time closing high on July 31, Barrons reported, citing Dow Jones Market Data.
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Despite Legal Risks, Analyst Remains Bullish on Roblox Stock
While Wolfe’s Khajuria acknowledged that the legal case in Louisiana has a potential downside risk for the firm, but justified saying that Roblox has made progress improving its platform’s safety and that its fundamentals warranted an upgrade, as reported by Barrons.She said, “We believe Roblox has a long runway for durable growth from low penetration in an attainable, large gaming [market],” adding, “Roblox is one of the fastest growing businesses in our coverage, and we see potential for meaningful margin expansion,” as quoted in the report.
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FAQs
Why did Roblox stock go up recently?Because a top analyst upgraded it to 'Buy' and raised the price target to $150.
Who upgraded Roblox’s stock?
Shweta Khajuria from Wolfe Research, a highly rated analyst on TipRanks.
