RBLX Should I Buy
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Roblox Corp (RBLX) is not a strong buy at this moment for a beginner investor with a long-term strategy. While there are some positive catalysts, the mixed analyst ratings, weak engagement trends, and lack of strong trading signals suggest a cautious approach. Holding the stock or waiting for further clarity on the company's performance and growth trajectory is recommended.
The MACD histogram is positive at 0.895 and expanding, indicating bullish momentum. RSI_6 is at 70.755, which is neutral but nearing overbought levels. Moving averages are converging, showing no clear trend. Key resistance levels are at 61.105 and 63.322, with support at 57.517 and 53.929. The pre-market price of 61.22 is testing the first resistance level.
Launch of Roblox Plus subscription service on April 30, 2026, which could enhance user engagement and provide additional revenue streams.
Introduction of new premium benefits starting May 30, 2026, aimed at increasing user retention and monetization.
Long-term potential for advertising business expansion.
Analysts have lowered price targets and expressed concerns about weak engagement trends and challenges in achieving growth metrics.
High costs and competition from other platforms like Fortnite and Grand Theft Auto VI.
Potential guidance cut, which could damage management's credibility and impact the stock's valuation.
In 2025/Q3, revenue increased by 47.96% YoY to $1.36B, showing strong top-line growth. However, net income remains negative at -$255.63M, though it improved by 6.81% YoY. EPS was -0.37, with no change YoY. Gross margin improved slightly to 78.2%, up 0.66% YoY, indicating operational efficiency gains.
Analyst sentiment is mixed. Several firms have lowered price targets, citing weak engagement trends and challenges in meeting guidance. TD Cowen has a Sell rating with a $54 target, while Citi and BTIG maintain Buy ratings with targets of $90 and $122, respectively. Roth Capital upgraded the stock to Buy with an $84 target, citing attractive valuation and strong bookings growth outlook.
