Roblox (RBLX) Sees User Growth Exceeding 150 Million and Initial Advertising Revenue Success in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy RBLX?
Source: Fool
- User Growth Acceleration: In 2025, Roblox's daily active users surged past 150 million, with engagement hours reaching record levels, indicating sustained global appeal that lays the groundwork for future advertising and creator monetization opportunities.
- Initial Advertising Revenue Success: Roblox transitioned to executing immersive ads and rewarded video ads, which, while not yet dominant, crossed a critical threshold that attracted attention from major brands, showcasing the company's potential in diversifying revenue streams.
- Strengthened Creator Ecosystem: In the first nine months of 2025, Roblox paid creators over $1 billion through its DevEx program, and the introduction of AI-assisted creation tools lowered barriers to content development, enhancing platform competitiveness and user retention.
- Profitability Model Challenges: While increased creator payouts support ecosystem health, they may pressure margins if revenue growth does not outpace them, necessitating Roblox to balance empowering creators with delivering shareholder returns.
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Analyst Views on RBLX
Wall Street analysts forecast RBLX stock price to rise
22 Analyst Rating
13 Buy
8 Hold
1 Sell
Moderate Buy
Current: 67.090
Low
70.00
Averages
133.89
High
180.00
Current: 67.090
Low
70.00
Averages
133.89
High
180.00
About RBLX
Roblox Corporation operates a platform for connection and communication (Roblox Platform), where every day, people come to create, play, work, learn, and connect with each other in experiences built by its global community of creators. The Company’s platform consists of the Roblox Client, the Roblox Studio, and the Roblox Cloud. Roblox Client is an application that allows users to seamlessly explore 3D immersive experiences. Roblox Studio is the free toolset that allows developers and creators to build, publish, and operate three-dimensional (3D) immersive experiences and other content accessed with the Roblox Client. Roblox Cloud includes the services and infrastructure that power its Platform. The Company operates the Roblox Platform as a live service that allows users to play and socialize with others for free. The Company offers developers and creators the ability to build engaging, immersive experiences and marketplace items that they can easily share with the Roblox community.
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.
Roblox Corporation Presents Long-Term Growth Investment Opportunity
- Market Sentiment Analysis: Despite facing macroeconomic pressures and high interest rates, Roblox (RBLX) trading at $66.42 presents an attractive entry point for investors, reflecting a market undervaluation of its long-term growth potential.
- User Growth and Retention: Roblox's user base continues to grow steadily with robust engagement and retention metrics; although currently operating at a loss, the company is poised to improve margins through operating leverage as monetization accelerates across its platform.
- Valuation Model Outlook: With an enterprise value of approximately $60 billion, Roblox's potential to capture additional market share in gaming and expand into adjacent metaverse markets suggests the possibility of several billion dollars in annual profit within the next five to ten years.
- Hedge Fund Holdings Change: As of the third quarter, 90 hedge fund portfolios held RBLX, up from 75 in the previous quarter, indicating increased market interest in Roblox, even as other AI stocks are viewed as having greater potential.
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- Stock Decline: Roblox's stock has plummeted 17.12% year-to-date and experienced a staggering 46.25% drop over the last six months, indicating a severe decline in investor confidence across all time horizons.
- Regulatory Investigation: The Netherlands Authority for Consumers and Markets has launched a formal investigation into whether Roblox adequately protects minors from harmful content and unsafe interactions, which could lead to significant fines and increased market uncertainty.
- Market Expectation Adjustment: Wall Street analyst Alicia Reese has cut Roblox's price target from $165 to $110, reflecting a pessimistic outlook on the company's future performance amid tightening global internet regulations.
- Market Performance Comparison: While Roblox's stock has declined year-to-date, the S&P 500 index has risen by 0.46%, highlighting Roblox's relative underperformance and a significant erosion of investor confidence in its growth prospects.
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- Significant Sales Decline: American Girl's annual sales fell to approximately $200 million in 2023, down over 60% from more than $600 million a decade ago, highlighting the brand's struggle amid digital competition and changing consumer patterns, necessitating a reevaluation of its market positioning.
- Intensifying Market Competition: With big-box retailers like Target offering lower-priced alternatives, the traditional American Girl doll starts at $135, leading parents to be more selective with discretionary spending in an inflationary environment, further narrowing the customer base.
- Challenges in Brand Loyalty: Although the brand has posted five consecutive quarters of sales growth, analysts indicate that this growth is off a significantly reduced base, raising questions about the brand's strategic importance and potentially impacting future investment decisions.
- Adapting to Digital Transformation: To engage younger consumers, American Girl is releasing modernized versions of its characters and investing in digital platforms like YouTube and TikTok to maintain interaction with the next generation, ensuring the brand's long-term viability.
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American Girl Brand Sees Sales Growth Amid Challenges on 40th Anniversary
- Sales Growth Trend: Despite American Girl's annual sales dropping from a peak of over $600 million to approximately $200 million in 2023, the brand's five consecutive quarters of sales growth indicate stabilization, suggesting potential for recovery amidst market pressures.
- Intensifying Market Competition: American Girl faces fierce competition from lower-priced alternatives, particularly from big-box retailers like Target's 'Our Generation' line, making its traditional $135 doll price point seem steep in an inflationary environment, thereby narrowing its customer base.
- Emotional Brand Value: The brand capitalizes on nostalgia by appealing to 'kidult' consumers, with its 40th anniversary not only celebrating its history but also introducing modernized versions of classic characters to balance the needs of both young and adult fans.
- Digital Transformation Challenges: As the definition of 'toy' evolves with children gravitating towards tablets and video games, American Girl is striving to engage the next generation through digital platforms and social media to maintain market relevance.
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Phil Spencer Leaves Microsoft After 38 Years Amid Xbox Challenges
- Leadership Change: Phil Spencer, head of Microsoft Gaming, is leaving after 38 years, having nearly tripled the gaming business since taking over Xbox in 2014, yet the company faces increasing challenges as Xbox revenue dropped about 10% in the December quarter amid stiff competition.
- Revenue Decline: While Microsoft’s total revenue grew nearly 17%, its gaming division reported an unspecified impairment charge in 2023, indicating struggles against competitors like Sony's PlayStation and Nintendo's Switch, leading to the closure of several game studios.
- Succession Plan: Asha Sharma will succeed Spencer as CEO of gaming, having joined Microsoft in 2024 from Instacart; Nadella noted that her partnership with Matt Booty will drive platform innovation and content pipeline, reaffirming commitment to core Xbox fans.
- Future Strategy: Sharma emphasized that games will always be art, rejecting short-term efficiency pursuits, and committed to integrating AI with gaming to ensure unique and innovative experiences that meet player expectations.
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- Shopify Investment Increase: Ark Invest invested $31.6 million in Shopify from February 11 to 12, increasing its holdings by nearly 10%, making it the seventh-largest holding at 3.2%, reflecting confidence in the e-commerce ecosystem despite AI competition pressures.
- Robinhood Stake Boost: During the same period, Ark Invest purchased $46.4 million in Robinhood Markets, raising its stake by 16% and making it the eighth-largest holding at 3.1%, indicating recognition of its commission-free trading platform despite market volatility.
- Roblox Holdings Addition: Ark Invest added approximately $20.3 million to its Roblox holdings from February 10 to 13, increasing its stake by 8% and making it the thirteenth-largest holding at 2.6%, showcasing long-term potential despite financial challenges and a 69% rise in daily active users.
- Market Environment Analysis: Despite significant declines in these stocks during 2022, Ark Invest's strategy to increase holdings indicates confidence in future growth, particularly in the context of AI and digital transformation, which may yield long-term benefits.
See More
Roblox Corporation Presents Long-Term Growth Investment Opportunity
- Market Sentiment Analysis: Despite facing macroeconomic pressures and high interest rates, Roblox (RBLX) trading at $66.42 presents an attractive entry point for investors, reflecting a market undervaluation of its long-term growth potential.
- User Growth and Retention: Roblox's user base continues to grow steadily with robust engagement and retention metrics; although currently operating at a loss, the company is poised to improve margins through operating leverage as monetization accelerates across its platform.
- Valuation Model Outlook: With an enterprise value of approximately $60 billion, Roblox's potential to capture additional market share in gaming and expand into adjacent metaverse markets suggests the possibility of several billion dollars in annual profit within the next five to ten years.
- Hedge Fund Holdings Change: As of the third quarter, 90 hedge fund portfolios held RBLX, up from 75 in the previous quarter, indicating increased market interest in Roblox, even as other AI stocks are viewed as having greater potential.
See More
Roblox Faces Significant Stock Decline Amid Regulatory Scrutiny
- Stock Decline: Roblox's stock has plummeted 17.12% year-to-date and experienced a staggering 46.25% drop over the last six months, indicating a severe decline in investor confidence across all time horizons.
- Regulatory Investigation: The Netherlands Authority for Consumers and Markets has launched a formal investigation into whether Roblox adequately protects minors from harmful content and unsafe interactions, which could lead to significant fines and increased market uncertainty.
- Market Expectation Adjustment: Wall Street analyst Alicia Reese has cut Roblox's price target from $165 to $110, reflecting a pessimistic outlook on the company's future performance amid tightening global internet regulations.
- Market Performance Comparison: While Roblox's stock has declined year-to-date, the S&P 500 index has risen by 0.46%, highlighting Roblox's relative underperformance and a significant erosion of investor confidence in its growth prospects.
See More
American Girl Brand Faces Modern Challenges Amid 40th Anniversary
- Significant Sales Decline: American Girl's annual sales fell to approximately $200 million in 2023, down over 60% from more than $600 million a decade ago, highlighting the brand's struggle amid digital competition and changing consumer patterns, necessitating a reevaluation of its market positioning.
- Intensifying Market Competition: With big-box retailers like Target offering lower-priced alternatives, the traditional American Girl doll starts at $135, leading parents to be more selective with discretionary spending in an inflationary environment, further narrowing the customer base.
- Challenges in Brand Loyalty: Although the brand has posted five consecutive quarters of sales growth, analysts indicate that this growth is off a significantly reduced base, raising questions about the brand's strategic importance and potentially impacting future investment decisions.
- Adapting to Digital Transformation: To engage younger consumers, American Girl is releasing modernized versions of its characters and investing in digital platforms like YouTube and TikTok to maintain interaction with the next generation, ensuring the brand's long-term viability.
See More
American Girl Brand Sees Sales Growth Amid Challenges on 40th Anniversary
- Sales Growth Trend: Despite American Girl's annual sales dropping from a peak of over $600 million to approximately $200 million in 2023, the brand's five consecutive quarters of sales growth indicate stabilization, suggesting potential for recovery amidst market pressures.
- Intensifying Market Competition: American Girl faces fierce competition from lower-priced alternatives, particularly from big-box retailers like Target's 'Our Generation' line, making its traditional $135 doll price point seem steep in an inflationary environment, thereby narrowing its customer base.
- Emotional Brand Value: The brand capitalizes on nostalgia by appealing to 'kidult' consumers, with its 40th anniversary not only celebrating its history but also introducing modernized versions of classic characters to balance the needs of both young and adult fans.
- Digital Transformation Challenges: As the definition of 'toy' evolves with children gravitating towards tablets and video games, American Girl is striving to engage the next generation through digital platforms and social media to maintain market relevance.
See More
Phil Spencer Leaves Microsoft After 38 Years Amid Xbox Challenges
- Leadership Change: Phil Spencer, head of Microsoft Gaming, is leaving after 38 years, having nearly tripled the gaming business since taking over Xbox in 2014, yet the company faces increasing challenges as Xbox revenue dropped about 10% in the December quarter amid stiff competition.
- Revenue Decline: While Microsoft’s total revenue grew nearly 17%, its gaming division reported an unspecified impairment charge in 2023, indicating struggles against competitors like Sony's PlayStation and Nintendo's Switch, leading to the closure of several game studios.
- Succession Plan: Asha Sharma will succeed Spencer as CEO of gaming, having joined Microsoft in 2024 from Instacart; Nadella noted that her partnership with Matt Booty will drive platform innovation and content pipeline, reaffirming commitment to core Xbox fans.
- Future Strategy: Sharma emphasized that games will always be art, rejecting short-term efficiency pursuits, and committed to integrating AI with gaming to ensure unique and innovative experiences that meet player expectations.
See More
Cathie Wood's Ark Invest Boosts Key Stock Holdings
- Shopify Investment Increase: Ark Invest invested $31.6 million in Shopify from February 11 to 12, increasing its holdings by nearly 10%, making it the seventh-largest holding at 3.2%, reflecting confidence in the e-commerce ecosystem despite AI competition pressures.
- Robinhood Stake Boost: During the same period, Ark Invest purchased $46.4 million in Robinhood Markets, raising its stake by 16% and making it the eighth-largest holding at 3.1%, indicating recognition of its commission-free trading platform despite market volatility.
- Roblox Holdings Addition: Ark Invest added approximately $20.3 million to its Roblox holdings from February 10 to 13, increasing its stake by 8% and making it the thirteenth-largest holding at 2.6%, showcasing long-term potential despite financial challenges and a 69% rise in daily active users.
- Market Environment Analysis: Despite significant declines in these stocks during 2022, Ark Invest's strategy to increase holdings indicates confidence in future growth, particularly in the context of AI and digital transformation, which may yield long-term benefits.
See More
