From Gaming to Growth: This Metaverse Giant Could Be the Next Big Win

30‑Second Take

Why now? Thought you’d missed the boat for Robolox stock? It could be time to rethink that stance, especially if you’re an investor with an eye to the long term.

This gaming stock has been one of the runaway success stories of 2025.

Despite climbing 105.70% in the year-to-date, analysts are convinced that it has much more room to grow.

Its upward trajectory shows no signs of stopping amid a series of innovations, including new safety measures, a new licensing platform which is already attracting major streamers, and rapid user growth outside of its core market.

Trade Setup

Time frame: Swing to long-term
Edge type: Momentum breakout

Snapshot Table

Chart

5-Day Synopsis: RBLX has gained 11.57% in the last five trading sessions, taking the stock price to the edge of its 52-week high of $121.49.

Trading received a double boost on Wednesday with the launch of a new licensing platform to unlock game and interactive media licensing at scale, as well as a new price target from JP Morgan.

Analysts there revised their expectations upwards from $120 to $125, simultaneously pushing stock prices in the same direction. 

A prior update from Citigroup, which revised its expectations from a high of $120 to a high of $123, also helped to give prices a boost earlier in the week.

Bull Case 

Core thesis: Roblox is an immersive gaming and creation platform that provides millions of users with a safe space to play, create, and connect through games and experiences.

The platform hosts user-generated content and virtual worlds. Users can create their own games and publish them on the platform using Roblox’s tools.

Players worldwide can discover those user-created games and play them alone or with friends via Roblox.

In-app purchases enable users to add equipment or change their avatar’s outfit, with revenue generated from game and experience monetization shared with creators. 

Catalysts: Roblox’s first-quarter earnings included a 29% year-over-year revenue growth and a 26% increase in daily active users.

Other fundamentals, such as average monthly unique payers, bookings, and time spent on the platform, also grew by double digits.

Coupled with a fast pace of innovation, partnerships, and expansion projects, Roblox is yet to falter this year.

While stock prices have jumped 88.84% over the last six months, the pace of new user acquisition and monetization strategies suggest further growth.

What’s more, interest and investment in the metaverse are expected to continue expanding, with a projected metaverse market value of $507.8bn by 2030. 

Valuation upside: Analyst price targets for RBLX range from a low of $38 to a high of $125. The average price target is $82.81. 

Technical tailwind: Technical indicators confirm that RBLX is in the midst of a well-established bull cycle.

Current prices are comfortably ahead of the 20-, 50-, 100-, and 200-day EMAs and SMAs.

Bear Case 

Key risk: Despite its long-term metaverse ambitions and strong technical signals, Roblox isn’t without risk.

Significant net losses persist despite high revenue growth, in part due to necessary investment in research and development programs.

The path to profitability could be more challenging than usual due to the platform’s revenue-sharing model with creators. 

Macro/sector headwinds: As a platform primarily used by children and teens, Roblox is subject to strict regulatory oversight and must be vigilant about content moderation to avoid lawsuits, sanctions, or worse.

Because it relies heavily on those users making in-app purchases to generate revenue, any economic downturn in its core markets worldwide could lead parents to curb this type of discretionary spending. 

Competitive threat: Roblox faces competition from other game platforms such as Epic Games and Minecraft.

Each platform is targeting the same youthful user base.

Rivals who provide superior graphics or create a buzz with unique creator tools could surpass Roblox’s appeal within the older teen to young adult market. 

Crowded-trade concern: RBLX has become a popular play among growth-focused hedge funds and retail investors.

Any bad press, poor earnings reports, or economic challenges could unwind interest, creating enormous selling pressure and a highly volatile environment for the stock.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (July 17, 2025)

Deep‑Dive Links

• Q1 2025 Earnings Report 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha