TLDR
- Roblox shares climbed 10% to $73.45 Monday following a Buy upgrade from Roth MKM analyst Eric Handler
- Handler raised his price target to $84 and expects over 20% annual bookings growth based on strong 2026 guidance
- The platform’s 18+ user base surged 50% in 2025 and generates 40% more revenue per user than younger demographics
- Viral game “Survive LAVA for Brainrots!” amassed 60 million visits in 10 days, outpacing previous hit titles
- Consensus analyst price target of $110.87 indicates 51% upside from Monday’s closing price
Roblox stock rose approximately 10% Monday, ending the session at $73.45 after receiving a bullish analyst upgrade that renewed investor confidence in the gaming platform.
Eric Handler from Roth MKM elevated his rating on RBLX shares from Neutral to Buy. He simultaneously boosted his price target from $78 to $84.
The upgrade arrived less than a week after Roblox released fourth-quarter results on February 5. Stock has gained 11% since earnings but trades below January levels.
Handler’s optimism stems primarily from better-than-expected 2026 bookings guidance. The analyst forecasts bookings will expand more than 20% per year going forward.
Creator Tools and Viral Content Drive Platform Growth
Handler emphasized ongoing platform enhancements as a catalyst for sustained growth. Roblox continues upgrading creator tools that help developers produce better content.
Improved games draw more users to the platform. Higher user engagement translates to increased spending. The analyst sees this flywheel effect continuing.
Recent game launches validate this growth strategy. “Survive LAVA for Brainrots!” debuted January 30 and grabbed 60 million total visits in its first 10 days.
Sunday alone brought 17.1 million visits to the game. This scaling pace exceeds “Escape Tsunami for Brainrots!” which required 26 days to achieve comparable numbers.
BMO Capital analysts identified Brainrot-themed games as an emerging core genre. The consistent pipeline of new titles shows healthy creator ecosystem activity.
Content beyond the top-10 games demonstrated robust performance. These experiences posted 68% engagement growth and 53% bookings growth, both accelerating from Q3 2025.
Demographic Shift Unlocks Revenue Potential
Roblox’s user composition is evolving beyond its youth-focused origins. The 18-and-over demographic expanded approximately 50% throughout 2025.
These mature users deliver higher monetization rates. Adult players spend roughly 40% more than younger users per Roth’s analysis.
This demographic transition eases prior concerns about growth constraints. It simultaneously opens fresh revenue opportunities.
Daily active users now total 144 million, reflecting 69% year-over-year growth. Monthly engagement averages exceed 24 unique experiences per user in 2025, up double-digits from 2024.
BMO Capital retained an Outperform rating with a $160 target. The firm believes Roblox can leverage AI developments better than gaming peers.
Analyst Consensus and Price Targets
Twenty-three Wall Street analysts assign RBLX a consensus Moderate Buy rating. The breakdown includes 17 Buy calls, five Hold recommendations, and one Sell rating from the past three months.
Average price target across coverage sits at $110.87. This level suggests 51% appreciation opportunity from Monday’s close.
Piper Sandler maintains an Overweight stance but trimmed its target to $100. The firm highlighted Q4 bookings growth of 63% year-over-year, exceeding forecasts by 8%.
TD Cowen retained a Sell rating despite strong bookings, expressing worries about engagement trajectory. Jefferies kept a Hold rating with a $70 target after reviewing quarterly performance.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
