Roblox (NYSE:RBLX) Shares Gap Up After Earnings Beat

Roblox Corporation (NYSE:RBLX)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $60.57, but opened at $67.41. Roblox shares last traded at $61.1920, with a volume of 4,771,907 shares trading hands.

The company reported ($0.45) EPS for the quarter, topping the consensus estimate of ($0.49) by $0.04. The firm had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $2.08 billion. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. The company’s quarterly revenue was up 122.6% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.33) EPS.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Q4 results showed strong engagement and bookings growth: bookings jumped ~63%, daily active users rose ~69% and engaged hours climbed ~88%, underpinning investor optimism about user monetization and growth. Roblox Reports Huge Surge in Bookings, Users, Engagement
• Positive Sentiment: Company beat on EPS (loss of $0.45 vs. -$0.49 est.) and gave stronger-than-expected first-quarter bookings guidance (range above Street consensus), which drove the after-hours and early-session jump. Roblox shares rocket 20% on earnings beat, strong forecast
• Positive Sentiment: Analyst support: BTIG reaffirmed a Buy with a $141 target, signaling continued Wall Street conviction at some firms and likely supporting upside interest. BTIG Buy Rating
• Positive Sentiment: Roblox launched new AI tooling that helps developers create functioning in-game models from natural-language prompts — a strategic product push to attract developers and boost content supply/monetization over time. Roblox launches AI tech
• Neutral Sentiment: Market commentary framed recent January selloff as overdone (Piper Sandler), helping sentiment even as volatility remains. Piper Sandler Views Recent Roblox Selloff as Exaggerated
• Negative Sentiment: Revenue missed some Wall Street models: reported revenue was $1.42B vs. higher consensus figures cited by some outlets, which leaves room for skepticism despite bookings strength. Roblox Q4 press release / slides
• Negative Sentiment: Needham cut its price target sharply from $159 to $105 (still a Buy), a headline that can weigh on sentiment by narrowing upside expectations. Needham price target cut
• Negative Sentiment: Notable insider selling and sizable institutional position changes were highlighted in coverage — items investors watch for governance and signal risk appetite among insiders. Quiver/insider & institutional activity

Wall Street Analyst Weigh In

Several research firms have recently weighed in on RBLX. Wells Fargo & Company decreased their price target on shares of Roblox from $141.00 to $107.00 and set an “overweight” rating on the stock in a report on Thursday, January 8th. UBS Group set a $74.00 price target on Roblox in a research report on Friday. Benchmark reiterated a “hold” rating on shares of Roblox in a research report on Monday. Needham & Company LLC cut their price objective on shares of Roblox from $159.00 to $105.00 and set a “buy” rating for the company in a research note on Friday. Finally, The Goldman Sachs Group raised shares of Roblox from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $155.00 to $180.00 in a research note on Friday, October 31st. Sixteen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $122.81.

Insiders Place Their Bets

In other news, CEO David Baszucki sold 66,896 shares of the company’s stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $76.48, for a total transaction of $5,116,206.08. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Naveen K. Chopra sold 19,424 shares of the business’s stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $95.23, for a total transaction of $1,849,747.52. Following the completion of the transaction, the chief financial officer directly owned 337,036 shares in the company, valued at $32,095,938.28. This trade represents a 5.45% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 423,899 shares of company stock valued at $37,883,851. Insiders own 12.92% of the company’s stock.

Hedge Funds Weigh In On Roblox

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RBLX. Pilgrim Partners Asia Pte Ltd purchased a new stake in Roblox in the third quarter worth $26,000. Whittier Trust Co. of Nevada Inc. purchased a new position in shares of Roblox in the 3rd quarter worth approximately $37,000. Total Investment Management Inc. acquired a new position in shares of Roblox during the second quarter worth $29,000. Root Financial Partners LLC acquired a new position in shares of Roblox in the third quarter worth about $38,000. Finally, Sunbelt Securities Inc. boosted its stake in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after acquiring an additional 105 shares in the last quarter. 94.46% of the stock is owned by institutional investors.

Roblox Price Performance

The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.54. The stock has a 50-day moving average price of $81.76 and a 200 day moving average price of $108.29. The stock has a market capitalization of $40.32 billion, a price-to-earnings ratio of -42.70 and a beta of 1.63.

Roblox Company Profile

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.