Roblox (RBLX) Stock Gaps Up 14% — Here’s What’s Driving It

TLDR

• Roblox stock jumped over 14% on Monday, opening at $50.90 and trading around $54.29, after Arete Research upgraded the stock from Neutral to Buy with a $95 price target.
• The stock crossed above its 20-day and 50-day moving averages but remains 30% below its 200-day moving average.
• Q1 revenue of $1.44 billion missed estimates of $1.74 billion, though EPS of -$0.35 beat the -$0.41 consensus.
• Roblox authorized a $3 billion buyback plan in May, covering up to 9.5% of outstanding stock.
• The Arkansas Attorney General filed a lawsuit against Roblox alleging the platform misrepresented child safety measures.

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Roblox (RBLX) opened Monday at $50.90, up from Friday’s close of $47.56, and climbed to around $54.29 — a gain of roughly 14.5% — on above-average volume of nearly 2.5 million shares.

Roblox Corporation, RBLX

The catalyst was an upgrade from Arete Research, which moved RBLX from Neutral to Buy and raised its price target from $75 to $95. That’s one of the more bullish calls on the street right now.

The stock crossed back above its 20-day SMA ($46.03) and 50-day SMA ($47.92) during Monday’s session. But it’s still trading about 30% below its 200-day moving average of $79.09, and a death cross formed back in December 2025.

MACD is above its signal line with a positive histogram — a sign that selling pressure is easing. Key resistance sits around $60.50. Support is near $52.50.

Analyst Sentiment Still Mixed

Not everyone is piling in. Wells Fargo cut its price target from $97 to $78, though it kept an Overweight rating. Piper Sandler downgraded to Neutral with a $50 target in May. DA Davidson also stayed Neutral and dropped its target to $45.

Goldman Sachs kept its Buy rating but trimmed its target to $65. BMO reiterated Outperform, and Oppenheimer started coverage at Outperform.

The overall consensus sits at Moderate Buy with an average price target of $86.30, per MarketBeat.

In Q1, Roblox posted EPS of -$0.35, beating the -$0.41 estimate. Revenue came in at $1.44 billion — up 43.4% year-over-year — but fell short of the $1.74 billion consensus.

The company’s board authorized a $3 billion share buyback in May, allowing it to repurchase up to 9.5% of its stock. CEO David Baszucki and insider Matthew Kaufman both sold stock in May to cover tax withholding on vested equity.

Child Safety Lawsuit in Focus

Arkansas Attorney General Tim Griffin filed a lawsuit against Roblox and Discord, alleging both platforms misrepresented their safety practices and made it easier for predators to reach minors.

The complaint also alleged Roblox paid over $900 million annually to developers who used the platform to spread explicit content. Roblox said it “strongly disputes” the claims and pointed to new age-check requirements for chat access.

Institutional investors own around 94.5% of RBLX stock. Several funds added new positions in Q4 2024, including Norges Bank with a stake valued at approximately $435 million.

The next earnings report is estimated for July 30, 2026. Analysts are projecting a loss of 34 cents per share on revenue of $1.60 billion.