Down 17%, Roblox Just Got a Big Vote of Confidence. Is It a Buy?

"The platform allows users to create and play 3D games, powered by its Roblox Studio and Client apps. Since 2006, it has evolved from a developer tool into a global phenomenon, driven by user-generated content and a virtual economy that utilizes Robux for in-game purchases. With over 100 million daily active users, mostly under 16, Roblox thrives on social gaming and creator payouts, boosted by AI tools and brand partnerships."

"Recently, though, Wall Street gave RBLX a big vote of confidence, but with a lofty valuation of 20x sales, is it a buy? Mostly Bullish Optimism Citi analysts just reiterated their buy rating on RBLX ahead of its Oct. 30 earnings report, bumping the price target from $152 to $155 per share, implying 24% upside potential. The move signals optimism for a strong Q3 beat, based on proprietary RoMonitor data tracking platform metrics like user engagement and bookings."

"The upgrade stems from several factors. First, RoMonitor shows robust Q3 trends, with daily active users and session lengths exceeding expectations, pointing to sustained momentum in core markets. Citi anticipates Roblox will surpass estimates for bookings - the company guided towards $1.6 billion - and adjusted EBITDA of around $200 million. They also expect RBLX to raise its full-year guidance, fueled by international expansion and ad revenue pilots."

Roblox is a platform for creating and playing 3D games via Roblox Studio and Client, driven by user-generated content and a Robux-powered virtual economy. The platform has over 100 million daily active users, mainly under 16, and relies on social gaming, creator payouts, AI tools, and brand partnerships. Revenue reached $3.6 billion in 2024, up 29%, while RBLX stock doubled in 2025 and surged 250% from 2022 lows, though it sits below a September peak. Citi reaffirmed a buy rating and raised a price target based on RoMonitor engagement data, expecting bookings and EBITDA beats, international growth, and ad revenue pilots.

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