RBLX Should I Buy
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Roblox Corp (RBLX) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown strong growth in bookings and revenue, concerns about profitability, insider selling, and bearish technical indicators suggest waiting for a more favorable entry point.
The stock is showing bearish moving averages (SMA_200 > SMA_20 > SMA_5), indicating a downward trend. The RSI is neutral at 35.808, and the MACD is above 0 but positively contracting. The stock is trading near its support level of 61.451, with resistance at 67.758. Overall, the technical indicators do not suggest a strong buy signal.
Strong Q4 bookings growth of 63% YoY.
Analysts remain optimistic about long-term growth, with multiple firms maintaining Buy ratings.
Positive outlook on AI integration and platform development.
Insider selling has increased significantly by 198.70% over the last month.
Concerns about profitability due to high stock compensation costs.
Bearish technical indicators and pre-market price decline of -0.46%.
In Q3 2025, revenue increased by 47.96% YoY to $1.36 billion. Net income improved but remains negative at -$255.6 million, up 6.81% YoY. EPS stayed flat at -0.37. Gross margin increased slightly to 78.2%. While revenue growth is strong, profitability remains a concern.
Analysts are generally positive about Roblox's long-term growth potential, with multiple firms maintaining Buy ratings. However, price targets have been adjusted downward due to broader market conditions and concerns about competition. The average price target remains significantly above the current price, indicating potential upside in the long term.
