Wolfe Research Cuts Roblox (RBLX) PT to $100 While Citing AI and New Products as 2026 Growth Drivers

Roblox Corporation (NYSE:RBLX) is one of the best up and coming stocks to buy according to Wall Street. On January 6, Wolfe Research lowered the firm’s price target on Roblox to $100 from $150 and maintained an Outperform rating on the shares. While 2026 is expected to be another profitable year for Internet stocks, the firm suggested that outperformance may be more modest than the previous 3 years due to currently stretched valuations. Despite these elevated multiples, the firm highlighted several factors that could drive further upside: AI-driven developments, new product launches, a resilient macroeconomic environment, and effective capital allocation.

Additionally, on December 12, JPMorgan downgraded the company to Neutral from Overweight with a price target of $100, which was brought down from $145. The firm observed that while Roblox saw a significant surge in engagement during 2025, this momentum is now beginning to fade. JPMorgan warned that shares could take a breather in 2026 as viral experiences move past their peak performance, leading to a moderation in engagement trends. Furthermore, the firm anticipates a slowdown in bookings growth and compressed profit margins in the year ahead.

On the same day, Jefferies lowered the firm’s price target on Roblox Corporation (NYSE:RBLX) to $100 from $115 and kept a Hold rating on the shares. The firm advised investors to remain selective regarding Internet stocks. Jefferies cautioned that increased incremental investments may restrict margin expansion, while ongoing concerns over AI-driven disintermediation could prevent stock multiples from appreciating.

Roblox Corporation (NYSE:RBLX) operates an immersive platform for connection and communication in the US and internationally.

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.

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