Roblox Introduces New Ad Formats to Enhance Brand Connections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Should l Buy AMZN?
Roblox (RBLX) announced new "immersive" ad formats, with the company saying it is scaling its advertising platform with new formats and tools designed to "solidify Roblox as an essential channel where brands can measure results and build authentic, lasting connections with Gen Z and Gen Alpha users." "Today, we are introducing the Homepage Feature-a premium format that connects brands directly to the next generation on the Roblox homepage, which is the starting point for over 151 million daily active users," Roblox said. "This new ad unit delivers brand-building reach with CPM-based buying, supported by key targeting and measurement options. When users click the ad, they experience the brand's video creative transformed into an immersive, 3D environment without the need for complex development." The company also said it is expanding its programmatic partnerships, using Amazon DSP (AMZN) and Liftoff for Demand-Side Platforms and Index Exchange, Magnite (MGNI), and PubMatic (PUBM) for Supply-Side Platforms.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 201.150
Low
175.00
Averages
280.01
High
325.00
Current: 201.150
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Plan: Amazon plans to invest $200 billion in capital expenditures in 2026, and despite management's expectation of strong long-term returns, investor caution regarding this massive spending has led to a 13% decline in stock price year-to-date.
- Cloud Computing Growth: Amazon Web Services (AWS) reported a 24% year-over-year revenue increase in Q4, reaching an annualized revenue run rate of over $140 billion, indicating strong market demand, particularly for AI workloads, further solidifying its leadership in the cloud computing sector.
- AI Chip Business: Amazon's Trainium2 AI chip has become its fastest-growing chip product, achieving an annualized revenue exceeding $10 billion, showcasing the company's strong momentum in the AI chip market and enhancing its competitiveness in the AI space.
- Profitability Risks and Opportunities: While Amazon's heavy reliance on AWS poses risks, if capital expenditures drive growth in this segment, it could enhance overall profitability, potentially leading to an inflection point in earnings growth in the long term.
See More
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- Technical Pullback: Amazon's stock has stabilized near the long-term support zone of $195 to $200 after a sharp technical reset, indicating that the recent market sentiment fatigue does not reflect a deterioration in its core fundamentals, presenting a buying opportunity for long-term investors.
- Oversold Conditions: The Relative Strength Index has fallen into oversold territory, historically associated with intermediate-term rebounds, and combined with significant deviations from key moving averages, this increases the likelihood of a technical rebound toward the $220 to $230 range.
- Profitability Metrics: Amazon's forward P/E ratio stands at approximately 25x, with expected EPS growth of 25% and net margins of 10.8%, all surpassing industry averages, highlighting its robust profitability in the AI infrastructure sector.
- Strategic Investment Opportunity: By selling the March 20, 2026 $200 put option, investors can potentially acquire Amazon shares at a net price of $192.97 if the stock closes below $200, offering a 3.64% discount and a maximum reward of $703 per contract, showcasing a risk-managed investment strategy.
See More
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- Amazon Cloud Acceleration: Amazon's Q4 sales rose 14% year-over-year to $213.4 billion, with AWS revenue increasing 24% to $35.6 billion, highlighting AI's critical role in driving growth and marking the fastest growth in 13 quarters.
- Strong Advertising Revenue: Amazon's advertising revenue grew 23% year-over-year to $21.3 billion, subscription services rose 14% to $13.1 billion, third-party seller services increased 11% to $52.8 billion, and online store revenue climbed 10% to $83.0 billion, indicating broad and sustained financial momentum.
- Google Cloud Rapid Growth: Alphabet's total revenue grew 18% year-over-year in Q4, with Google Cloud revenue surging 48%, significantly outpacing Amazon's growth, showcasing Google's strong performance and market potential in the AI sector.
- Risk-Reward Tradeoff: While Amazon and Alphabet have similar P/E ratios of 28.6 and 28.1 respectively, Alphabet's faster cloud growth may offer higher returns, although both companies' substantial spending plans introduce increased investment risks.
See More
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- Rate Policy Disagreement: The Federal Reserve's meeting minutes reveal divisions among officials, with some prioritizing labor market support over inflation control, indicating potential uncertainty in market expectations regarding future rate movements.
- Positive Market Reaction: Major U.S. indexes rose on Wednesday, driven by tech stocks, with Nvidia shares climbing after Meta announced it would utilize the chipmaker's next-generation systems, highlighting the tech sector's strong performance's positive impact on the overall market.
- Oil Price Surge: Oil prices jumped over 4% after U.S. Vice President JD Vance stated that Iran is not yet willing to acknowledge certain
See More
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- Nvidia's Market Leadership: Nvidia's stock has surged over 700% in the past three years, establishing itself as a key player in the AI market, which has driven double-digit revenue growth and maintained a gross margin exceeding 70%, with expectations for continued strong growth ahead.
- Moderna's Potential Turnaround: Despite facing declining vaccine demand and policy challenges, Moderna's pipeline of investigational cancer vaccines and candidates for rare diseases offers hope for a transformative future, making its current stock price attractive during this recovery phase.
- Amazon's Cloud Business Advantage: Amazon's AWS has emerged as a leader in AI products and services, achieving an annual revenue run rate of $142 billion, and despite concerns over capital investments, strong market demand and profitability make its current stock price appealing at 25x forward earnings estimates.
- Market-wide Pullback Opportunities: Although the S&P 500 has faced challenges from economic factors recently, investors can seize current buying opportunities, particularly in AI-focused companies, which are expected to yield substantial returns for long-term investors.
See More
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- Investor Preferences: The ten most owned stocks on Robinhood include blue-chip stocks like Amazon, Apple, and Alphabet, indicating that investors are still focused on high-growth tech plays, even as they avoid more speculative stocks.
- Google's AI Potential: Google's Gemini generative AI platform is rapidly growing, with analysts expecting revenue and EPS to grow at CAGRs of 15% and 12% from 2025 to 2028, highlighting its strong potential in the digital advertising and cloud infrastructure markets.
- Amazon's Market Advantage: As the world's largest e-commerce and cloud infrastructure company, Amazon leverages AWS profits to expand its retail business, with analysts projecting revenue and EPS growth at CAGRs of 12% and 18% from 2025 to 2028, indicating robust future growth.
- Investment Recommendation: Analysts view both Alphabet and Amazon as evergreen stocks worth investing in, and Robinhood investors' choices reflect confidence in these stocks, especially amid current market volatility, showcasing their long-term investment value.
See More
