Roblox's Virtual World Has Real Profits Ahead, Analyst Says

Benzinga

B. Riley initiated Roblox with a Buy rating and a $125 target, citing surging engagement, viral hits, and strong creator incentives that could support 20%+ bookings growth. Roblox’s aging audience, new ad tools, and payment features open the door to deeper monetization.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Roblox is expanding its push into next-generation gaming as B. Riley Securities initiated coverage

00:08with a buy rating and a $125 price forecast, according to Benzinga. The analysts said Roblox

00:15is positioned to capture a larger share of the global gaming market through rising user engagement,

00:20viral breakout hits, and investments in safety, AI, and infrastructure.

00:25Seven titles surpassed 10 million daily active users in the third quarter of 2025.

00:31Crum said this content momentum, supported by strong creator incentives, can drive sustained

00:3720%-plus bookings growth. He noted Roblox recently generated over $4 billion in bookings and said

00:43an aging user base, new ad tools, and direct payment features leave room for further monetization.

00:49The analysts projected fourth-quarter revenue of $2.04 billion and adjusted EBITDA of

00:54$546.4 million and said Roblox warrants a premium valuation.

01:00For all things money, visit Benzinga.com.

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