Roblox stock was trading at $45.89 as of 12:45 PM EDT.
Roblox (NYSE:RBLX) received a top rating when Piper started covering the company, noting a large possibility of user growth. The stock currently has an Overweight rating from analyst Thomas Champion and a $54 per share price objective. Despite a general decline in the tech sector and a 9% rise the day before on the strength of recent data points, the stock is down 1.2% in premarket trade.
In a note, Champion stated that “Roblox is a unique asset at the crossroads of gaming, social, and the Metaverse.” “In comparison to peers, we envision a sizable global user opportunity and monetization upside. In ’23, the advertising opportunity serves as a catalyst. We believe that valuation is expensive but justified.” According to Champion, “we see a rather simple path to DAU’s doubling in the next five years.” With an addressable population of 1.4 billion people worldwide, DAU penetration is still low (4%).
In comparison to Snap ($0.09) and YouTube ($0.12), the platform appears to be under-monetized at about $0.06 per user-hour, he continued. “Finally, even while user time spent is high today at about 2.5 hours per DAU per day, we still see scope for development from usage categories like social and streaming video, which account for 5–6 hours per day for the average teen,” the report said.
Roblox Stock Analyzed
Given the company’s September financial results, Needham analysts increased their bookings and adjusted EBITDA projections for Roblox Corporation (NYSE:RBLX) in October, sending Roblox stock through the roof. According to the company’s September data, bookings totaled between $212 million and $219 million, and the number of daily active users increased by 23% year over year to 57.8 million. In light of these outcomes,
Needham analyst Bernie McTernan increased his adjusted EBITDA projections for the third and fourth quarters of Roblox Corporation (NYSE:RBLX) by 6% and 12%, respectively. He also increased his fourth-quarter bookings projections to $852 million from the previous estimate of $824 million.
Roblox Stock: Is It Too Late To Invest?
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Author Jowi Kwasu 
