US gaming company Roblox stock moves up after analyst shifts to buy

Roblox Corporation (NYSE: RBLX) shares gained ground on Friday after Wolfe Research issued a bullish upgrade, signalling fresh confidence in the gaming platform’s long-term growth potential—even as the company navigates regulatory scrutiny and recent controversies.

Shweta Khajuria, senior analyst at Wolfe Research, raised Roblox from Peer Perform to Outperform and lifted the stock’s price target to $150. In her note, she highlighted Roblox’s content flywheel, improvements in search discovery, and adoption of artificial intelligence tools that are accelerating user-generated experiences on the platform.

At mid-morning trading, RBLX rose 2.3% to $117.50, continuing its recovery after losing about 16% from late July highs. Despite the August downturn, Roblox shares have nearly doubled year-to-date in 2025.

Analyst’s Case for Growth

Khajuria argued that Roblox is still early in capturing a vast addressable gaming market. She expects the platform’s AI-powered ecosystem to generate stronger engagement and more frequent breakout games. In June alone, 28 of the top 200 paid experiences were launched within the past year—up from 21 the year prior.

The analyst also pointed to pricing innovations as catalysts:

• Regional pricing to adapt to local markets
• Tiered/differential pricing giving players more options
• AI tools for creators to recommend optimal in-game prices

Advertising is another key driver. Wolfe projects $300 million in incremental gross bookings by 2026 and $650 million by 2027 from video ads alone, adding meaningful upside to Roblox’s revenue mix.

Balancing Optimism with Risks

Not all is smooth for Roblox. The Louisiana Attorney General recently sued the company, accusing it of failing to protect minors from predators and facilitating child exploitation material. Safety concerns remain a recurring theme in public discourse around the platform, which is heavily used by players under 18.

Khajuria acknowledged these risks but noted Roblox has improved its trust and safety measures. Wolfe maintains that the company’s fundamentals—particularly user engagement, monetisation improvements, and ad expansion—justify a more positive outlook.

Other market watchers share the view. According to third-party tracking, Roblox holds a Strong Buy consensus rating from Wall Street analysts, with an average price target near the mid-$140s, implying notable upside from current levels.

Investor Sentiment Shifts

Independent research groups have also pivoted to bullish after previously cautious stances. Some expect bookings growth of up to ~80% year over year in Q3 2025, which could lift RBLX shares into the $150–$175 range before year-end.

While negative headlines surrounding child safety lawsuits and a potential Indonesia ban continue to cloud sentiment, bulls argue these risks are overstated. Surveys suggest that Roblox users don’t perceive the platform as markedly less safe than other online gaming environments, though reputational backlash could still weigh on adoption.

Outlook

Roblox faces a pivotal second half of 2025. If advertising rollouts, content velocity, and pricing strategies deliver as expected, the platform could outpace consensus estimates. The challenge will be maintaining user trust while capitalising on commercial opportunities in gaming and the metaverse.

For now, Wall Street’s latest upgrade has helped investors regain confidence in Roblox’s growth story.

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Roblox Stock Jumps After Analyst Upgrade—AI, Ads, and Pricing Fuel Growth Outlook