Roblox Corporation (RBLX) is a Buy amid Stiff Competition on UGC Gaming Space: BMO Capital

Roblox Corporation (NYSE:RBLX) is one of the best augmented reality stocks to buy right now. On November 20, BMO Capital reiterated an Outperform rating on Roblox Corporation (NYSE:RBLX) and set a $155 price target. The research firm remains optimistic about the company’s outlook, even as it faces stiff competition in the user-generated content gaming space.

The research firm has echoed the company’s 152 million daily active users and its annual UGC creator payouts totaling $1.5 billion. The massive scale underscores the company’s edge in fending off competition following the recent partnership between Epic Games and Unity.

On November 12, JPMorgan analyst Cory Carpenter echoed a bullish stance on the stock with a Buy rating. The analyst has echoed the stabilization of the company’s platform engagement and the slight acceleration in the year-over-year trend. Consistent engagement metrics and the platform’s ability to shrug off competitive pressures justify the buy rating.

Roblox Corporation (NYSE:RBLX) is an AR enabler. Its platform—Roblox Client, Studio, and Cloud—lets creators build and monetize immersive experiences that combine augmented reality with virtual worlds. Developers use Roblox Studio to build AR experiences like virtual try-ons and interactive marketing across various devices. While Roblox is expanding its AR and VR capabilities, it doesn’t make AR hardware, and its core focus remains on user-generated content, gaming, and social interaction, making it a key AR beneficiary.

While we acknowledge the potential of RBLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.