Roblox Shares Surge Following Upgrade to "Outperform" by Wolfe Research

Roblox shares rise after Wolfe Research upgrades the company, citing its strong user engagement and revenue growth. The company operates a free platform for connection and communication, allowing users to create, play, work, learn, and connect with others in immersive experiences. Its platform consists of the Roblox Client, Roblox Studio, and Roblox Cloud, offering developers and creators the tools to build and share 3D content.

Roblox Corporation (NYSE: RBLX) saw its shares rise following an upgrade by Wolfe Research, which cited strong user engagement and revenue growth as key drivers. The brokerage firm upgraded Roblox to "Outperform" from "Peer Perform" and raised its price target to $150, pointing to new revenue streams from advertising and regional pricing that could accelerate growth [1].

Wolfe Research raised its 2026 bookings and EBITDA estimates by 7% and 13%, respectively, forecasting that regional pricing will add about $318 million in bookings and advertising about $300 million in gross revenue. The estimates now sit 9% and 8% above Wall Street consensus [1].

The analysts acknowledged risks around stock-based compensation, safety controversies, and regulatory scrutiny but noted that these have historically not altered the company's fundamentals. At about 36 times 2026 EBITDA, Roblox trades below comparable gaming and internet peers on a growth-adjusted basis, Wolfe said [1].

Roblox operates a free platform for connection and communication, allowing users to create, play, work, learn, and connect with others in immersive experiences. Its platform consists of the Roblox Client, Roblox Studio, and Roblox Cloud, offering developers and creators the tools to build and share 3D content [2].

References:
[1] https://www.investing.com/news/stock-market-news/wolfe-upgrades-roblox-as-it-sees-catalysts-from-ads-and-regional-pricing-4206961
[2] https://roblox.fandom.com/wiki/Roblox_Studio