Roblox $RBLX ( ▲ 10.58% ) shares climbed in early trading after Roth Capital upgraded the stock from neutral to buy and raised its price target to $84 from $78. The firm pointed to a “sustainable virtuous circle” where better tools for creators are leading to higher-quality games, stronger user experiences, and more engagement across the platform.
That positive feedback loop is starting to show up in the numbers.
Older Players, Bigger Wallets
A key part of the bull case is Roblox’s fast-growing 18-plus audience. According to Roth, that segment expanded by about 50% last year and monetizes roughly 40% better than younger users. In other words, Roblox is not just getting bigger. It is getting older and more valuable per player.
That shift helps address a long-standing concern that Roblox’s business was too dependent on kids and teens with limited spending power.
Momentum Building, But Competition Looms
The stock also got a boost after last week’s earnings report, where Roblox delivered stronger-than-expected full-year bookings guidance. Even so, shares are still below levels seen in January, before Alphabet $GOOGL ( ▲ 0.45% ) introduced its AI-powered interactive world generator, Project Genie.
That backdrop underscores both the opportunity and the risk. Roblox’s ecosystem is deepening and maturing, but the rise of AI-driven content creation could reshape how virtual worlds are built and experienced. For now, at least, investors are betting Roblox can stay ahead of the curve.