NYSE:RBLX

Roblox Corporation (RBLX)

55.35
-1.08 (1.91%)
as of Jul 10, 2026, 8:00:00 pm Market Open.
79 watching
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Investor Insights
star iconJul 10, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

Roblox Corporation (RBLX) has garnered mixed reviews from analysts. One expert highlighted a significant decline of 58% from its top pick status and shared personal losses, expressing skepticism about the company’s future amidst increasing competition from AI technologies. While he acknowledges the company's fundamentals, he remains cautious and would not invest further despite the analysts’ price target of $65. Another analyst has adopted a more strategic approach, engaging in covered call writing to capitalize on potential short-term gains while expressing a long-term positive outlook on the stock. Nevertheless, the investor is wary of ongoing lawsuits, which add a layer of uncertainty to the company's performance. Overall, there's acknowledgment of Roblox's value proposition, yet concerns about external challenges loom heavily.

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Consensus
Cautious
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Valuation
Undervalued
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DON'T BUY
Not a buyer of company. Issue for company is whether bigger companies are tough competition.
DON'T BUY
He's been taking shares off the table and holds very little. BOA downgraded it today. He doesn't care if this goes to zero, because he owns so little.
COMMENT
Once a high-flying growth stock, but hammered by the current market. Last night they reported a disappointing quarter with misses, but investors later saw much better than expected free cash flow and management called March a bottom and are forecasting things to improve going further. Shares rose today. Could this be a bottom?
DON'T BUY
It's too low to sell. The market changed, wanting companies that make tangible things which Roblox does not do.
BUY
MS made a buy call today and shares are popping. When Facebook renamed itself to Meta, Roblox enjoyed the halo effect. Unlike FB, Roblox has real metaverse products. Revenues from Q3-2020 to Q3-2021 were up 100% with $500 million in revenues and $170 million in free cash flow. It's a sticky platform that pays outside developers to create content for users. The NFL, Sony and Warner Brothers just entered partnerships with them. She's looking out for this quarter is the effect of the new Squid Game content that got added to Roblox that drove new users. She has sold calls on this name, though, because it's a volatile name, but she also owns it long.
RISKY
Caller is down 34%. He's looking at it carefully. Seems to have caught a bit of a bid recently. Pure play on the metaverse, lets people develop their own games. Easy to use, for the beginner-intermediate. He also likes Unity Software, for the intermediate-advanced. Problem is both are not profitable, and with rising interest rates, slashing PEs, you have to be very nimble. He's reluctant to give 12-month price targets, as these are trades, not investments. Should go north of $100, but not much over $110.
COMMENT
The market doesn't like these long-term value stocks now that interest rates are about to rise, but it's a great company.
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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

A speculative buy for the new year. While Mark Zuckerberg is envisioning the metaverse for Facebook, Roblox is already there. Roblox furnishes a platform for developers to create, build and publish 3D content. It's The Matrix come alive, and the digital frontier. Just this past New Year's, Paris Hilton invited everyone to celebrate on her virtual online island, Paris World, where visitors could explore her digital Beverly Hills estate including her dog mansion (you read that right) and visit the site of her neon carnival wedding on Santa Monica Pier by gliding around on a virtual yacht or luxury car. Not only Ms. Hilton, by Tommy Hilfiger, Nike (through Nikeland) and rapper Lil Nas X have ventured into the metaverse through Roblox.

BUY ON WEAKNESS
It's down 28% from its 52-week high. Could be a big winner in 2022. He just bought this, but only a third of his normal position. Volatility will let him buy more. He paid around $101. He thinks it's the next big global platform It boasts about 50 millions daily users (9 million are creating games on the platform) and 200 million monthly active users. He's been watching this since its IPO. Half of all U.S. kids under 16 are playing on Roblox--this is the metaverse already. It has it own virtual currency already. It converts 40 cents on every $1 into free cash flow. Its valuation remains reasonable. He's super bullish on user growth and engagement. He will add on any pullbacks.
WATCH
Really interesting company. Follows it. Pure play in the metaverse. Lets developers come in and build virtual reality platforms. Also helps monetize apps. Monetization will happen sooner elsewhere. His choice in the metaverse space is MSFT.
BUY
It's trading just above $106 (calls were bought just below that). Buying Dec. 31 expiring calls: are 6,500 of the $115 calls. This week's it gotta perform strongly and make a big move to the upside. Calls started at 50 cents and rose to 85.
BUY ON WEAKNESS
The top 5 junior, next-generation growth/tech stocks: #1 Roblox: Makes it easy for users to make and share content. They're the inventor of the metaverse, really, formerly seen as a Covid play, like Docusign. But it has transcended that label. Great CEO. Buy on any weakness.
DON'T BUY
Very progressive. Price target of $180. Instead, look at Unity Software or even FB, when it comes to the metaverse side. Caters to the younger generation.
BUY
A metaverse play. In fact, RBLX already has its own internal metaverse and you can even get paid for your efforts.
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