Roblox (NYSE:RBLX) Shares Gap Up Following Strong Earnings

Roblox Corporation (NYSE:RBLX)’s share price gapped up prior to trading on Friday following a better than expected earnings announcement. 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 traded.

The company reported ($0.45) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.49) by $0.04. Roblox had a negative return on equity of 311.88% and a negative net margin of 21.78%.The company had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $2.08 billion. During the same quarter last year, the company earned ($0.33) EPS. The firm’s quarterly revenue was up 122.6% on a year-over-year basis.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Strong Q4 engagement and bookings — Bookings rose sharply and daily active users and engaged hours topped Street expectations, a core reason shares rallied after the print. Barron’s: Roblox Reports Huge Surge in Bookings, Users, Engagement
• Positive Sentiment: Guidance upside — Management gave first-quarter and full‑year bookings/revenue targets that were above consensus, reinforcing growth expectations and fueling the post‑earnings rally. CNBC: Roblox shares rocket 20% on earnings beat, strong forecast
• Positive Sentiment: Management narrative on product and AI — CEO Dave Baszucki emphasized AI tools that enable creator-driven content and ongoing focus on community/safety, supporting the long‑term monetization story. YouTube: Roblox earnings: CEO talks gaming, AI, and user growth
• Neutral Sentiment: Coverage mostly bullish but mixed — Several firms reaffirmed positive ratings and high price targets (e.g., BTIG, Wedbush), reflecting confidence in the growth outlook even after recent volatility. Benzinga: Analyst notes
• Neutral Sentiment: Market reaction centered on user metrics more than GAAP profitability — reporters and analysts are highlighting DAU/bookings growth as the primary driver rather than near‑term EPS. WSJ: Roblox Posts Higher Revenue as Bookings, Daily Active Users Rise
• Negative Sentiment: Analyst downgrades / lower targets — Some shops cut price targets or trimmed expectations (JPMorgan cut its target to $75 and moved to neutral), which could cap upside if momentum fades. Benzinga: JPMorgan price target cut
• Negative Sentiment: Company still unprofitable — Roblox reported a GAAP loss (improved vs. prior year) and negative margins, a reminder that growth is not yet translating into sustained profitability. MarketBeat: Q4 results and transcript

Analyst Ratings Changes

A number of brokerages recently weighed in on RBLX. Oppenheimer dropped their target price on shares of Roblox from $150.00 to $130.00 and set an “outperform” rating for the company in a research report on Friday. Macquarie Infrastructure boosted their price target on shares of Roblox from $158.00 to $164.00 and gave the stock an “outperform” rating in a research note on Tuesday, November 4th. Benchmark restated a “hold” rating on shares of Roblox in a research report on Monday. Citigroup reaffirmed a “buy” rating on shares of Roblox in a report on Friday. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a research report on Monday, December 29th. Sixteen analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $123.76.

Insider Activity at Roblox

In other news, CAO Amy Marie Rawlings sold 2,642 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $95.24, for a total transaction of $251,624.08. Following the transaction, the chief accounting officer owned 46,452 shares of the company’s stock, valued at approximately $4,424,088.48. The trade was a 5.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Mark Reinstra sold 16,782 shares of the stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $95.24, for a total value of $1,598,317.68. Following the sale, the insider owned 370,532 shares in the company, valued at $35,289,467.68. The trade was a 4.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 423,899 shares of company stock valued at $37,883,851 over the last ninety days. 12.92% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Reyes Financial Architecture Inc. lifted its holdings in shares of Roblox by 164.4% in the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after acquiring an additional 194 shares during the last quarter. Pilgrim Partners Asia Pte Ltd purchased a new stake in Roblox in the 3rd quarter worth about $26,000. Total Investment Management Inc. purchased a new stake in Roblox in the 2nd quarter worth about $29,000. Indiana Trust & Investment Management Co bought a new stake in Roblox in the fourth quarter worth about $32,000. Finally, Whipplewood Advisors LLC purchased a new position in shares of Roblox during the second quarter valued at approximately $34,000. Institutional investors own 94.46% of the company’s stock.

Roblox Stock Performance

The stock has a market cap of $43.61 billion, a P/E ratio of -42.96 and a beta of 1.63. The business has a 50 day moving average price of $81.19 and a 200 day moving average price of $107.88. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.54.

About Roblox

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.