Wolfe Research slashes price target on Roblox Corporation [RBLX] – find out why.

Roblox Corporation [NYSE: RBLX] stock went on an upward path that rose over 3.11% on Tuesday, amounting to a one-week price increase of more than 2.93%.

Over the last 12 months, RBLX stock rose by 122.04%. The one-year Roblox Corporation stock forecast points to a potential upside of 11.45. The average equity rating for RBLX stock is currently 2.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $89.06 billion, with 644.95 million shares outstanding and 595.60 million shares in the current float. Compared to the average trading volume of 9.12M shares, RBLX stock reached a trading volume of 7878077 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Roblox Corporation [RBLX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RBLX shares is $145.08 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RBLX stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wolfe Research have made an estimate for Roblox Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on August 22, 2025. The new note on the price target was released on July 23, 2025, representing the official price target for Roblox Corporation stock. Previously, the target price had yet another raise from $120 to $125, while JP Morgan kept a Overweight rating on RBLX stock.

The Price to Book ratio for the last quarter was 252.11, with the Price to Cash per share for the same quarter was set at 3.79. Price to Free Cash Flow for RBLX in the course of the last twelve months was 94.56 with Quick ratio for the last quarter at 0.80.

RBLX Stock Performance Analysis:

Roblox Corporation [RBLX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.93. With this latest performance, RBLX shares gained by 2.75% in over the last four-week period, additionally plugging by 106.61% over the last 6 months – not to mention a rise of 122.04% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RBLX stock in for the last two-week period is set at 57.49, with the RSI for the last a single of trading hit 6.43, and the three-weeks RSI is set at 6.08 for Roblox Corporation [RBLX]. The present Moving Average for the last 50 days of trading for this stock 118.04, while it was recorded at 125.48 for the last single week of trading, and 79.03 for the last 200 days.

Insight into Roblox Corporation Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Roblox Corporation [RBLX] shares currently have an operating margin of -27.35% and a Gross Margin at 26.30%. Roblox Corporation’s Net Margin is presently recorded at -23.67%.

Roblox Corporation (RBLX) Capital Structure & Debt Analysis

According to recent financial data for Roblox Corporation. ( RBLX), the Return on Equity (ROE) stands at -401.21%, highlighting a negative impact on investor capital. The Return on Assets (ROA) is -13.30%, reflecting the company’s efficiency in generating profits from its assets. Additionally, Roblox Corporation’s Return on Invested Capital (ROIC) is -47.93%, showcasing its effectiveness in deploying capital for earnings.

Roblox Corporation (RBLX) Efficiency & Liquidity Metrics

Based on Roblox Corporation’s (RBLX) latest financial statements, the Debt-to-Equity Ratio is 5.05%, indicating its reliance on debt financing relative to shareholder equity.

Roblox Corporation (RBLX) Efficiency & Liquidity Metrics

From an operational efficiency perspective, Roblox Corporation. (RBLX) effectively leverages its workforce, generating an average of -$384935.33 per employee. The company’s liquidity position is robust, with a Current Ratio of 0.80% and a Quick Ratio of 0.80%, indicating strong ability to cover short-term liabilities.

RBLX Stock EPS

With the latest financial reports released by the company, Roblox Corporation posted -0.37/share EPS, while the average EPS was predicted by analysts to be reported at -0.38/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.01. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RBLX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Roblox Corporation go to 13.64%.

Roblox Corporation [RBLX] Institutonal Ownership Details

There are presently around $86.96%, or 91.13%% of RBLX stock, in the hands of institutional investors. The top three institutional holders of RBLX stocks are: VANGUARD GROUP INC with ownership of 49.61 million shares, which is approximately 7.7172%. ALTOS VENTURES MANAGEMENT INC., holding 43.94 million shares of the stock with an approximate value of $$1.64 billion in RBLX stocks shares; and ALTOS VENTURES MANAGEMENT INC., currently with $$1.12 billion in RBLX stock with ownership which is approximately 4.6651%.

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