Roblox (RBLX) Stock Jumps 10% on Wall Street Upgrade and Strong Bookings Outlook

TLDR

• Roblox stock jumped 10% to $73.45 after Roth MKM analyst Eric Handler upgraded the stock to Buy and raised his price target to $84
• Handler cited stronger-than-expected 2026 bookings guidance and expects over 20% annual growth for the next few years
• The platform’s 18-plus user group grew 50% last year and generates 40% more revenue per user than younger players
• New viral game “Survive LAVA for Brainrots!” hit 60 million lifetime visits in 10 days, scaling faster than previous hit games
• Wall Street analysts give the stock a Moderate Buy rating with an average price target of $110.87, implying 51% upside

Roblox stock climbed about 10% Monday to close at $73.45 following a Wall Street upgrade that boosted investor confidence in the gaming platform’s growth prospects.

Roblox Corporation, RBLX

Roth MKM analyst Eric Handler upgraded RBLX shares to Buy from Neutral and lifted his price target to $84 from $78. The new target suggests 14% upside from current levels.

Handler pointed to stronger-than-expected 2026 bookings guidance as the main driver for his upgraded outlook. The analyst now expects bookings to grow more than 20% annually over the next few years.

The upgrade came less than a week after Roblox reported fourth-quarter earnings on February 5. Shares have gained about 11% since the earnings release, though they remain below January levels.

Platform Improvements Drive Growth Expectations

Handler said Roblox is making meaningful improvements to its creator tools. These upgrades help developers build better games on the platform.

Better games attract more users. Higher user activity leads to more spending. The analyst believes this cycle can sustain growth over time.

The platform is also seeing success with new viral content. “Survive LAVA for Brainrots!” launched January 30 and reached 60 million lifetime visits within 10 days.

The game hit 17.1 million visits on Sunday alone. That’s faster scaling than its predecessor “Escape Tsunami for Brainrots!” which took 26 days to reach similar numbers.

BMO Capital noted these Brainrot-themed games are becoming a core genre on the platform. The constant flow of new games in this category shows strong creator engagement.

Shifting User Demographics Boost Revenue

Roblox is no longer focused mostly on children. The platform’s 18-plus player group grew about 50% last year.

These older users spend more money. Adult players generate about 40% more revenue than younger users, according to Roth’s analysis.

This demographic shift reduces concerns about future growth potential. It also opens up new monetization opportunities for the platform.

Roblox now has 144 million daily active users, up 69% year-over-year. Users are engaging with over 24 unique experiences per month in 2025, up double-digits from 2024.

Experiences outside the platform’s top-10 games grew engagement and bookings by 68% and 53% respectively. Both metrics accelerated from third-quarter 2025.

BMO Capital reiterated an Outperform rating with a $160 price target. The firm said Roblox appears well-positioned to benefit from AI developments in gaming.

Wall Street analysts give RBLX a consensus Moderate Buy rating. That rating comes from 17 Buy, five Hold, and one Sell recommendations issued in the last three months.

The average price target stands at $110.87 across 23 analysts. This implies 51% upside from current levels.

Piper Sandler maintained an Overweight rating but lowered its price target to $100. The firm noted fourth-quarter bookings growth of 63% year-over-year exceeded expectations by 8%.

TD Cowen kept a Sell rating, expressing concerns about engagement trends despite strong bookings. Jefferies maintained a Hold rating with a $70 price target after the fourth-quarter results.

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