Roblox Exceeds Market Returns, Sets Stage for Q1 Earnings Report

Roblox (RBLX) stock surged 2.65% to $122.17, outperforming the S&P 500's 0.54% gain. The online gaming platform's stock rose 15.95% in the past month, exceeding the Consumer Discretionary sector's gain of 4.15% and the S&P 500's gain of 4.2%. The company is set to release its earnings on July 31, 2025, with projected EPS at -$0.36 and revenue at $1.22 billion. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance.

Roblox (RBLX) stock surged 2.65% to $122.17 on July 2, 2025, outperforming the S&P 500's 0.54% gain. The online gaming platform's stock rose 15.95% in the past month, exceeding the Consumer Discretionary sector's gain of 4.15% and the S&P 500's gain of 4.2%. The company is set to release its earnings on July 31, 2025, with projected EPS at -$0.36 and revenue at $1.22 billion.

The recent surge in Roblox's stock price can be attributed to a series of positive developments. JPMorgan analyst Cory Carpenter upgraded the stock, raising its price target to $125 from $120 and maintaining an "Overweight" rating. The analyst cited surging engagement levels, with concurrent users hitting an all-time high of 32 million, as a key driver of growth [1].

Additionally, Roblox's announcement of a new tool allowing developers to license iconic characters from franchises like "Stranger Things" and "Squid Game" for use within the platform's experiences has further boosted investor confidence. This development is expected to drive more user engagement and spending on in-game items and experiences, which is crucial for Roblox's business model [1].

Roblox's stock has been quite volatile, with 17 moves greater than 5% over the last year. However, the recent move indicates that the market considers the news meaningful but not something that would fundamentally change its perception of the business [1].

Roblox's recent performance indicates positive market sentiment, though some analysts suggest the stock is trading above its Fair Value. Oppenheimer has maintained its Outperform rating and raised the price target for Roblox to $125, citing potential upside in bookings driven by the popular game "Grow a Garden" [2]. Meanwhile, Piper Sandler has increased its price target to $105, maintaining an Overweight rating due to strong user data and record usage on the platform [2]. However, TD Cowen has reiterated a Sell rating with a price target of $40, noting a recent decline in user engagement for "Grow a Garden" [2].

Investors who bought $1,000 worth of Roblox’s shares at the IPO in March 2021 would now be looking at an investment worth $1,716, highlighting the company's impressive growth over the past year [1]. Roblox is up 103% since the beginning of the year and has set a new 52-week high of $119.29 per share, reflecting a strong performance over the past year [2].

Roblox is expected to release its earnings on July 31, 2025, with projected EPS at -$0.36 and revenue at $1.22 billion. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance.

References:

[1] https://finance.yahoo.com/news/roblox-rblx-shares-skyrocket-know-182042185.html
[2] https://www.investing.com/news/company-news/roblox-stock-hits-52week-high-at-1120-93CH-4136025