Roblox Retail Traders Uber-Bullish As Stock Snags Multiple Price Target Hikes After Q1 Outperformance

San Mateo, California-based Roblox Corp. (RBLX) reported beat-and-raise results for the first quarter of the fiscal year 2025, prompting analysts to raise their price targets for the stock.

The immersive gaming and creation platform reported a loss of $0.32 per share, narrower than the year-ago loss of $0.43 and exceeding the Finchat-compiled consensus estimate of $0.39.

Revenue rose 29% year over year (YoY) to $1.035 billion, and bookings jumped 31% to $1.21 billion versus the consensus estimate of $1.14 billion. 

The company also raised its full-year guidance and issued an upbeat outlook for the second quarter.

Following the quarterly results, Morgan Stanley analyst Matthew Cost increased his price target for Roblox stock to $76 from $70 and maintained an 'Overweight' rating. 

The analyst said the quarter showcased momentum across RBLX's key metrics, including engagement, monetization, profitability, and the health of its creator economy.

Cost said, "This leaves us constructive on RBLX's flywheel continuing to drive share gains in gaming from here, with multiple call options like ads and e-commerce still ahead."

Morgan Stanley believes Roblox is one of the biggest beneficiaries of the verdict of the Apple (AAPL)-Epic lawsuit handed down on April 30, which allowed the latter to use its own payment system in Fortnite on iOS.

"The recent court decision likely creates [an] even greater opportunity for RBLX to bring customers to direct payment channels, which could accelerate the pace of gross margin improvement from here," the firm added.

The stock received a string of price target raises from other analysts as well, according to The Fly.

Citi upped the price target to $85 from $78 and maintained a 'Buy' rating, citing the first-quarter results and the outlook.

• Needham lifted the price target to $79 from $72 and maintained a 'Buy' rating, citing the earnings beat and the achievable bar the company set for the remainder of the year.
• BMO Capital increased the price target to $86 from $79 and maintained a 'Buy' rating.
• Benchmark upped the price target to $77 from $71 and kept a 'Buy' rating.
• JPMorgan raised the price target to $80 from $75 and maintained an 'Overweight rating.
• Wells Fargo upped the price target to $78 from $79 and kept an 'Overweight' rating.
• CANACCORD Genuity raised the price target to $84 from $80 and maintained a 'Buy' rating.
   

On Stocktwits, retail sentiment toward Roblox stock was 'extremely bullish' (84/100) by late Sunday, with the message volume at 'extremely high' levels.

A bullish user said the stock is in "beast mode" and will continue to grind higher.

Another user called Roblox a "value play."

Roblox stock is up 28% year-to-date. The Koyfin-compiled consensus price target for the stock is $72.24, implying a 2.50% downside from current levels.

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