Key Takeaways
- Shares of Roblox surged more than 14% Monday, starting the session at $50.90 and reaching approximately $54.29, following an upgrade by Arete Research from Neutral to Buy with a price target of $95.
- The gaming platform’s shares moved above both the 20-day and 50-day simple moving averages, though they continue to trade roughly 30% beneath the 200-day moving average.
- First-quarter revenue reached $1.44 billion, falling short of the $1.74 billion analyst forecast, while earnings per share of -$0.35 surpassed the -$0.41 expectation.
- In May, the company greenlit a $3 billion stock repurchase program, representing up to 9.5% of shares outstanding.
- Arkansas’s Attorney General initiated legal action against Roblox, claiming the company mischaracterized its child protection protocols.
Shares of Roblox (RBLX) kicked off Monday’s trading at $50.90, representing a jump from the previous session’s closing price of $47.56, and advanced to approximately $54.29 — marking a 14.5% increase — accompanied by elevated trading volume exceeding 2.4 million shares.
The surge stemmed from Arete Research’s decision to elevate RBLX from Neutral to Buy while simultaneously increasing its price objective from $75 to $95. This represents among the most optimistic assessments currently available from Wall Street analysts.
During Monday’s trading, the stock reclaimed territory above both its 20-day SMA ($46.03) and 50-day SMA ($47.92). However, shares remain approximately 30% underwater compared to the 200-day moving average at $79.09, with a death cross pattern emerging in December 2025.
The MACD indicator has climbed above its signal line with a positive histogram reading — suggesting diminishing bearish momentum. Immediate resistance appears around the $60.50 level, while support is establishing near $52.50.
Wall Street Remains Divided on Outlook
The analyst community hasn’t reached consensus. Wells Fargo reduced its price objective from $97 down to $78 while maintaining its Overweight stance. Piper Sandler shifted to Neutral in May with a $50 target. DA Davidson similarly maintained a Neutral position while lowering its target to $45.
Goldman Sachs preserved its Buy recommendation but decreased its price target to $65. BMO confirmed its Outperform rating, and Oppenheimer initiated coverage with an Outperform designation.
The aggregate analyst view stands at Moderate Buy with a mean price target of $86.30, according to MarketBeat data.
For the first quarter, Roblox delivered EPS of -$0.35, exceeding the -$0.41 consensus forecast. Revenue totaled $1.44 billion — representing 43.4% year-over-year growth — but underperformed the $1.74 billion analyst estimate.
The company’s board approved a $3 billion share repurchase authorization in May, permitting buybacks of up to 9.5% of outstanding equity. Chief Executive David Baszucki and insider Matthew Kaufman both executed stock sales in May for tax obligations related to equity compensation vesting.
Legal Challenge Over Child Protection
Tim Griffin, Arkansas’s Attorney General, launched litigation against Roblox and Discord, contending that both companies misrepresented their safety protocols and facilitated access to minors by potential predators.
The legal filing further claimed Roblox distributed over $900 million annually to developers who utilized the platform for distributing inappropriate content. The company responded by stating it “strongly disputes” these allegations and highlighted recently implemented age verification requirements for chat functionality.
Institutional shareholders control approximately 94.5% of RBLX shares. Multiple investment firms established new positions during the fourth quarter of 2024, with Norges Bank acquiring a position valued at roughly $435 million.
The company’s upcoming quarterly results are scheduled for July 30, 2026. Wall Street forecasts anticipate a loss of 34 cents per share alongside revenue of $1.60 billion.
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