Roblox (RBLX) Jumps 8% as Firm Gains Compelling Edge in Video Game Sector

We recently published 10 Big Names With Surprising Gains. Roblox Corp. (NYSE:RBLX) is one of the top performers of last week.

Roblox saw its share prices grow by as much as 8 percent on Monday before paring gains to close at $124.81 apiece as investors took path from an investment firm’s bullish stance, saying that it was  “the most compelling growth opportunity in the video game sector.”

In a market note, Wedbush maintained its “outperform” rating and price target of $165 on Roblox Corp.’s (NYSE:RBLX) stock amid its on-hit games that could drive platform growth, developer incentives, infrastructure improvements, and AI-driven discovery features.

The price target represents a 32-percent upside potential from its latest closing price.

Additionally, Wedbush said that Roblox Corp.’s (NYSE:RBLX) expansion into new genres and tapping the older demographics has raised its potential for advertising opportunities, while pricing optimization across games and regions continues to improve revenue streams.

While Wedbush acknowledges risks from ongoing legal challenges over the company’s alleged child sexual exploitation, the investment firm highlighted Roblox Corp.’s (NYSE:RBLX) track record in quick response with meaningful actions to create a safe environment across all age groups.

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