Oppenheimer has reduced its 12-month price objective for Roblox Corp. (NYSE:RBLX) to $130.00, down from $150.00, while keeping an Outperform rating on the shares. At the time of the note, RBLX was trading at $60.57, well below its 52-week peak of $150.59. InvestingPro data cited in the analyst coverage shows the stock has fallen 7.89% over the past week and is trading below its Fair Value.
The firm’s valuation-driven cut follows Roblox’s fourth-quarter 2025 bookings release, which recorded $2.22 billion. That figure topped FactSet consensus expectations of $2.09 billion. Bookings expanded 63% year-over-year in the quarter, and daily active user counts rose 69% over the same period.
Those operational gains are reflected in the company’s topline momentum: InvestingPro data notes Roblox’s revenue increased 35.77% over the most recent twelve months. Despite that growth, the company remains unprofitable on a forecast basis, with a projected EPS of -$1.55 for fiscal year 2026.
Roblox issued guidance for 2026 bookings with a midpoint of $8.4 billion, which implies roughly 24% year-over-year growth and outpaces consensus expectations of 20% growth for the year. Management addressed investor concerns that generative artificial intelligence could disrupt its model, instead framing technologies that lower the barriers to creation as potential accelerants for content production and platform activity.
In its rationale for keeping an Outperform rating despite trimming the target, Oppenheimer highlighted several structural positives: a long-term trajectory of improving platform economics, untapped revenue opportunities such as advertising and e-commerce, and technological advantages it views as defensible versus gaming competitors.
Roblox’s fourth-quarter 2025 earnings report also beat expectations on both revenue and earnings per share. The company reported revenue of $2.22 billion, ahead of the $2.07 billion analysts had anticipated, and posted an EPS of -$0.45, which was better than the forecasted -$0.47.
Other brokerages have issued a variety of updates to their views and targets for Roblox. Goldman Sachs lowered its price target to $140 from $180 while maintaining a Buy rating, noting the company’s investment plans; the firm cited solid bookings growth in the quarter and anticipated continued momentum into 2026, albeit at a moderated pace in the latter half of the year. Freedom Capital Markets upgraded the stock to Buy and held its price target at $85, citing the stock’s recent closure well below prior levels.
Meanwhile, UBS trimmed its target to $74 from $103 and kept a Neutral rating, pointing to concerns about artificial intelligence competition in gaming. Needham reduced its price objective to $105 from $159, attributing the revision to a broad technology sector sell-off while remaining constructive on Roblox’s underlying fundamentals. These adjustments underscore a range of analyst assessments on Roblox’s near-term trajectory and long-term potential.
Key takeaways
- Oppenheimer cut its Roblox price target to $130 from $150 but maintained an Outperform rating, citing valuation concerns despite operational strength.
- Roblox reported Q4 2025 bookings of $2.22 billion, beating the $2.09 billion FactSet consensus; bookings rose 63% year-over-year and daily active users grew 69% in the period.
- Analyst views diverge: some firms lowered price targets but kept positive ratings, while others cited AI competition or sector sell-offs when reducing valuations.
Risks and uncertainties
- Competition from artificial intelligence in gaming is an explicit concern cited by UBS and noted in analyst commentary, which could affect market dynamics in the gaming and technology sectors.
- Roblox remains unprofitable on a forecast basis, with an expected EPS of -$1.55 for FY2026, presenting execution and profitability risk for investors focused on earnings.
- Valuation sensitivity is evident as multiple firms adjusted price targets downward amid sector volatility and company-specific investment plans, indicating potential market-driven downside risk for the stock.
The collection of updates from Oppenheimer, Goldman Sachs, Freedom Capital Markets, UBS and Needham highlights differing interpretations of the same set of operational results and guidance. While bookings and user metrics for the quarter surprised to the upside, questions about profitability, investment pacing and competitive pressure from AI are driving a dispersion in analyst price targets and ratings.