Is Roblox Corp. (RBLX) the Best Debt-Free Stock to Buy Now?

Roblox Corporation (NYSE:RBLX) is among the best debt-free stocks to buy now. Early last week, Morgan Stanley reaffirmed its bullish stance on the stock with an Overweight rating, but reduced the price target from $170 to $155, according to The Fly. The review was part of the analyst’s note on the North America Internet group.

The firm expects the performance in the internet sector in 2026 to be “thematically similar” to 2025. Within that, it believes that companies exhibiting strong returns (as measured by Return on Invested Capital (ROIC)) from their investments in GenAI or GPU-enabled technologies are expected to be favoured by investors. However, Morgan Stanley identified subsectors that face heightened disruption risk and therefore will command lower valuation multiples. These subsectors included ridesharing that faces disruption from autonomous vehicles, as well as e-commerce, travel, and smaller, less-proven advertising platforms.

In a follow-up note a day later, Morgan Stanley highlighted the strong performance of a new game called “Escape Tsunami,” which has reached the number 4 spot on the platform in just a month after launch. Though the firm acknowledges that the game’s success is only a short-term positive, it sees it as a showcase of the platform’s strength and an indication of robust engagement and bookings growth in 2026. It reiterated its Overweight rating and $155 price target.

Roblox Corporation (NYSE:RBLX) operates an immersive online gaming and creation platform that enables people to create, connect, and communicate.

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:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

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