Wolfe Research estimates that regional pricing alone could add $318 million to bookings in 2026, while advertising revenues may inject an additional $300 million in that timeframe.
Roblox Corp. (RBLX) received an endorsement from Wolfe Research as the firm upgraded the gaming platform’s stock from ‘Peer Perform’ to ‘Outperform,’ citing an expected surge in user activity and monetization strategies.
The firm projected that enhancements in user discovery tools and strategic pricing changes will strengthen Roblox’s long-term business model, as per TheFly. These ‘platform flywheel effects’ are likely to accelerate growth across the ecosystem, Wolfe said.
Roblox stock traded over 3% higher on Friday afternoon. The firm assigned a $150 price target, pointing to multiple tailwinds that could lift the stock in the coming quarters, including regional pricing updates and a more defined advertising strategy.
Wolfe Research estimates that regional pricing alone could add $318 million to bookings in 2026, while advertising revenues may inject an additional $300 million in that timeframe.
The upgrade comes at a time when the company is refining its platform experience and expanding its appeal to older demographics. However, the firm is facing criticism after Louisiana’s attorney general filed a lawsuit accusing the gaming platform of allowing predators to exploit children and failing to enforce adequate safety measures.
On Stocktwits, retail sentiment around the stock remained in ‘extremely bearish’ territory amid ‘extremely high’ message volume levels.
In the second quarter (Q2), Roblox’s bookings marked a 51% surge year-on-year (YoY), fueled by momentum in key markets like Japan, India, the Philippines, Korea, and Indonesia. The daily active users (DAUs) over the age of 13 grew 54% YoY, representing over 64% of the company’s total DAUs.
For the full fiscal year 2025, the company anticipates bookings between $5.87 billion and $5.97 billion. Roblox stock has gained over 104% in 2025 and 173% in the last 12 months.
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