Roblox (RBLX) Surges 10.5%: Is This an Indication of Further Gains?

Roblox (RBLX) shares rallied 10.5% in the last trading session to close at $84.8. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.8% loss over the past four weeks.

Roblox's recent stock rally is likely to be driven by optimism around its strengthening platform fundamentals and expanding strategic positioning. Investors are likely encouraged by sustained engagement momentum, a broader mix of successful experiences, and improving monetization dynamics across regions and age cohorts. The company’s differentiated ecosystem—anchored by a robust creator economy, advanced discovery capabilities, and accelerating AI integration—continues to reinforce confidence in its competitive moat. Additionally, ongoing investments in infrastructure, safety, and scalability enhance long-term platform resilience and execution credibility. Together, these factors are likely supporting positive market sentiment and confidence in Roblox’s longer-term growth trajectory.

This online gaming platform is expected to post quarterly loss of $0.50 per share in its upcoming report, which represents a year-over-year change of -51.5%. Revenues are expected to be $2.07 billion, up 52.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Roblox, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RBLX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Roblox is part of the Zacks Gaming industry. MGM Resorts (MGM), another stock in the same industry, closed the last trading session 0.5% lower at $34.65. MGM has returned -6.9% in the past month.

For MGM, the consensus EPS estimate for the upcoming report has changed -5.6% over the past month to $0.63. This represents a change of +40% from what the company reported a year ago. MGM currently has a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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