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Roblox (RBLX) shares closed over 10% higher on Thursday after the video game firm reported a strong Q2 reflecting its “strategic investments in infrastructure, performance, discovery, and the virtual economy.”
RBLX shares rallied today also because the company’s management raised its booking guidance to a much better-than-expected $1.615 billion in the third quarter.
Roblox stock has been on an absolute tear over the past four months – and is now up more than 175% versus its year-to-date low set in early April.
Is Q2 Report a Strong Enough Reason to Buy Roblox Stock?
The RBLX earnings release brings several reasons for investors to consider owning this gaming stock for the long term.
For example, the NYSE-listed firm said it ended the second quarter with 111.8 million daily active users (DAUs), up a whopping 41% on a year-on-year basis and well above the 106 million expected.
Meanwhile, hours engaged went up 58% in Q2 to 27.4 billion as well.
In the earnings release, CEO David Baszucki said Roblox wants to own at least 10% of the global gaming content market.
His long-term target indicates commitment to continued momentum, which may translate to a further increase in RBLX share price over time.
Canaccord Analysts Raise Price Target on RBLX Shares
Roblox’s strong second-quarter report made Canaccord Genuity analysts raise their price target on its stock to $160, indicating potential upside of another 17% from here.
According to the investment firm, viral experiences like “Grow a Garden” that drive cross-platform activity, artificial intelligence-powered discovery tools that boost engagement, and infrastructure investments that support scalability will drive RBLX stock up further in the second half of 2025.
With revenue growing at a fast clip, the company’s monetization potential through advertising and commerce is compelling, the analysts added.
They agreed that Roblox shares are currently trading at a premium valuation, but said a rare blend of growth and margin expansion warrants owning them still.
Other Wall Street Analysts Recommend Cutting Exposure to Roblox
Not all Wall Street analysts are as constructive on Roblox stock as Canaccord Genuity, though.
According to Barchart, the consensus rating on RBLX shares currently sits at “Moderate Buy” with the mean target of $104.42 actually signaling potential downside of nearly 25% from current levels.
