Roblox Corporation (NYSE:RBLX) Stock Update

Shares of Roblox Corporation jumped 3.6% in pre-market trading on Monday following Morgan Stanley’s upgrade of the stock from "equal-weight" to "overweight."

The brokerage revised its price target to $65, up from $38.

This positive outlook reflects Morgan Stanley’s confidence in Roblox’s recent operational momentum and expanding market potential. The platform successfully grew its user base and achieved gains across various demographics and platforms.

Analysts from Morgan Stanley highlighted strong third-quarter results, reporting a 28% year-over-year growth in bookings outside the console segment, marking its highest increase since the peak of COVID-19 in 2021.

Roblox’s expansion to the PlayStation platform in October was pivotal for this growth, showcasing the strategy to capture new users through cross-platform accessibility. Even with significant console bookings, the non-console segment dominated, accounting for over 90% of bookings.

The platform has successfully attracted older audiences, with 41% of daily active users over 17, indicating that Roblox’s content offerings are reaching a more diverse age demographic.

Popular experiences, such as NFL Universe Football and Rivals, highlight this appeal by blending entertainment genres.

Morgan Stanley also noted Roblox’s potential to generate additional revenue from advertising and e-commerce, which could lead to significant long-term growth.

These avenues are seen as high-margin opportunities that could enhance the company’s bottom line, with further stock appreciation possible—potentially reaching $110 under Morgan Stanley’s bull-case scenario if advertising revenue expands beyond current estimates.