Roblox’s fair value estimate has been notably raised, primarily due to higher revenue growth expectations and a substantial increase in its Forward P/E multiple, lifting the consensus analyst price target from $72.66 to $98.82.
What's in the News
- Roblox faces a lawsuit alleging the platform enabled the sexual exploitation of a minor and misrepresented its safety measures to parents, seeking unspecified damages.
- The company launched a Learning Hub featuring educational experiences from providers like Google, BBC, and Sesame Workshop, aiming to broaden its reach in interactive learning for youth.
- New safety and communication features were introduced, including Trusted Connections for users 13+, age estimation tech, enhanced privacy/well-being tools, and more transparency for parents of teens.
- Roblox unveiled a licensing platform enabling IP holders to easily offer licenses to creators, launching with partners such as Netflix, Lionsgate, Sega, and Kodansha to expand popular franchises on the platform.
- Naveen Chopra was appointed as Chief Financial Officer, bringing substantial experience from roles at Paramount, Amazon, Pandora, and TiVo; he succeeds Michael Guthrie.
- Roblox provided Q2 and full-year 2025 guidance, projecting quarterly revenue of $1.02–1.045 billion and a net loss of $288–268 million; full-year revenue is forecast at $4.29–4.365 billion with a net loss of $1.037–0.977 billion.
Valuation Changes
Summary of Valuation Changes for Roblox
- The Consensus Analyst Price Target has significantly risen from $72.66 to $98.82.
- The Future P/E for Roblox has significantly risen from 99.36x to 129.98x.
- The Consensus Revenue Growth forecasts for Roblox has risen from 27.1% per annum to 28.9% per annum.
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