Roblox (RBLX:NYE) Stock Surges on Bookings Update

Roblox Stock Forecast

According to stock forecasts from 19 analysts, the average target price for Roblox Corp’s stock is $41.44 within the next 12 months. The average analyst rating for the company is “Buy” and Stock Target Advisor’s own analysis of the company is “Neutral” based on 4 positive signals and 4 negative signals. The company’s stock price closed at $33.21 and has seen an increase of 7.93% in the past week, 20.24% in the past month, but a decrease of 57.99% over the last year.

Roblox Beats on Bookings Update

Roblox Corp., the global gaming platform, saw a significant increase in its stock value as of late. The company’s stock climbed as much as 15%, the most in three months, after better-than-expected December bookings drove up expectations for fourth-quarter earnings.

According to a statement released by the company, estimated bookings rose as much as 20% from the same period last year, reaching a total of between $430 and $439 million. The company also saw an increase in active daily users last month, growing 18% year-over-year to 61.5 million.

Truist Securities analysts stated that “the stock deserves to trade up on these metrics,” as the bookings beat the sell-side consensus. Stifel analysts led by Drew Crum also said that the metrics set the company up for better-than-expected fourth quarter results, with the company set to report in February.

The online gaming industry saw a surge in stock value during the early days of the pandemic, but many of these stocks have since sold off along with other stay-at-home beneficiaries. Roblox, in particular, saw a 72% decrease in its stock value last year. However, if the video-game platform continues to see growth in the fourth quarter, it could show investors that playing in the metaverse can be sustainable in a post-pandemic environment.

Expansion into emerging markets and easier year-over-year comparisons could also spur a further recovery in global mobile-game revenue. In addition, Roblox announced that it will stop releasing monthly metrics after April in favor of quarterly publication.

Recent Analyst Coverage

Several analysts have recently lowered their target price for Roblox Corp’s stock, including Stifel Nicolaus Research to $40, BTIG Research to $48, and STA Research to $39. STA Research also maintains a “Buy” rating for the company. Wolfe Research has downgraded the company to “Underperform” with a target price of $24, while Morgan Stanley maintains an “Equal-Weight” rating but lowered their target price from $35 to $27.5. Jefferies Financial LLC also lowered their target price to $33.

 

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