RBLX
BTIG isn’t backing away
Roblox got a fresh vote of confidence from BTIG Research, which reiterated a Buy rating and set a $122 price target. That’s a pretty spicy call when the stock is sitting nowhere near that level — Wall Street’s way of saying the market may be sleeping on the upside.
But the numbers aren’t exactly a victory lap
There’s a catch, because Roblox’s latest quarter was a mixed bag wrapped in a gamer hoodie. The company beat EPS estimates with a loss of $0.45 per share versus the expected $0.49 loss, but it also missed revenue hard at $1.42 billion versus $2.08 billion expected.
Yes, revenue still jumped 122.6% year over year, but the company is still unprofitable, with a negative net margin and a hefty negative return on equity. So this is less “problem solved” and more “the growth story is still trying to prove itself.”
The stock has baggage too
Investors also got a reminder that insiders have been selling. Over the past three months, insiders unloaded 527,018 shares worth about $37.1 million, including sales by Arvind Chakravarthy and director Gregory Baszucki. That doesn’t automatically mean doom — insiders sell for lots of reasons — but it’s not exactly a billboard reading “we can’t buy enough.”
Big picture: BTIG’s call keeps Roblox squarely in the “high-upside, high-drama” bucket. If growth keeps improving, the stock could have room to re-rate. If not, that $122 target starts looking more like a wish than a forecast.