Roblox (NYSE:RBLX) Shares Gap Up Following Better-Than-Expected Earnings

Roblox Corporation (NYSE:RBLX) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 trading hands.

The company reported ($0.45) EPS for the quarter, topping 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 period last year, the business posted ($0.33) EPS. Roblox’s quarterly revenue was up 122.6% on a year-over-year basis.

More 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 research analysts have recently issued reports on RBLX shares. JPMorgan Chase & Co. cut their price target on Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a report on Friday. UBS Group set a $74.00 price objective on Roblox in a research report on Friday. Benchmark reiterated a “hold” rating on shares of Roblox in a report on Monday, February 2nd. Oppenheimer lowered their price target on shares of Roblox from $150.00 to $130.00 and set an “outperform” rating on the stock in a report on Friday. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $100.00 price objective (down previously from $125.00) on shares of Roblox in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Roblox currently has an average rating of “Moderate Buy” and an average price target of $123.76.

Insider Activity at Roblox

In related news, CAO Amy Marie Rawlings sold 2,642 shares of the stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $95.24, for a total value of $251,624.08. Following the transaction, the chief accounting officer owned 46,452 shares in the company, valued at approximately $4,424,088.48. This represents a 5.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mark Reinstra sold 16,782 shares of the firm’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 $1,598,317.68. Following the transaction, the insider directly owned 370,532 shares of the company’s stock, valued at $35,289,467.68. This represents a 4.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 423,899 shares of company stock worth $37,883,851 in the last quarter. 12.92% of the stock is owned by insiders.

Institutional Trading of Roblox

A number of hedge funds have recently modified their holdings of RBLX. Norges Bank acquired a new position in shares of Roblox in the 2nd quarter valued at $350,720,000. Vanguard Group Inc. grew its position in Roblox by 5.6% during the third quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company’s stock valued at $8,648,911,000 after buying an additional 3,284,073 shares during the period. Federated Hermes Inc. increased its holdings in Roblox by 103.0% in the second quarter. Federated Hermes Inc. now owns 3,245,338 shares of the company’s stock valued at $341,410,000 after buying an additional 1,646,871 shares in the last quarter. Massachusetts Financial Services Co. MA raised its position in shares of Roblox by 47.0% in the second quarter. Massachusetts Financial Services Co. MA now owns 4,788,195 shares of the company’s stock worth $503,718,000 after acquiring an additional 1,531,380 shares during the period. Finally, 1832 Asset Management L.P. boosted its stake in shares of Roblox by 359.8% during the 2nd quarter. 1832 Asset Management L.P. now owns 1,818,394 shares of the company’s stock worth $191,295,000 after acquiring an additional 1,422,894 shares in the last quarter. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Roblox Stock Performance

The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96. The firm has a market capitalization of $43.61 billion, a PE ratio of -42.96 and a beta of 1.63. The firm’s 50 day moving average price is $81.19 and its 200-day moving average price is $107.80.

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.