Roblox (NYSE:RBLX) started out life as just a video game, until it became a complete marketplace, a stock, and even a topic on an episode of “The Simpsons.” And now, it’s pulling in a little more shareholder interest thanks to some new guidance. That was enough to push Roblox up nearly 1.5% in Wednesday afternoon’s trading.
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Profit taking has likely kicked in, as Roblox was much higher than it is right now earlier on in the day. In fact, at one point it was up nearly 6% after Roblox’s CFO, Michael Guthrie, noted that the company was so far “comfortable” with earlier-released estimates from FactSet. Further, Roblox will also offer up full-year estimates, as well as first quarter estimates, in February 2024. In fact, Roblox looked for its results to ultimately beat those of analyst estimates, bringing in $4.03 billion against projections calling for $3.98 billion.
Roblox has More Planned than Just Earnings
The numbers projected were certainly welcome, but there’s got to be something underpinning said numbers, otherwise, what’s the point? Thankfully, Roblox was ready on this front as well, working on new gameplay elements and technologies like incorporating artificial intelligence. It’s also working on new video portal advertising to help draw in brands and their accompanying dollars. This all comes at an excellent time for Roblox, as it’s also facing down a class-action lawsuit from concerned parents over issues of what content is available for viewing by children on the platform.
How Much is Roblox Stock Worth?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RBLX stock based on 13 Buys, two Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 15.43% rally in its share price over the past year, the average RBLX price target of $41.11 per share implies 2.79% upside potential.
