DA Davidson Lowers PT on Roblox (RBLX) Stock

Roblox Corporation (NYSE:RBLX) is one of the Best Long-Term Stocks to Buy Now for High Returns. On May 22, DA Davidson reduced its price objective on the company’s stock to $45 from $47.50 and kept a “Neutral” rating. As per the firm, there has been continued acceleration in average user growth on Fortnite’s user-generated content maps for 5 straight months. The firm believes that growth could impact Roblox Corporation (NYSE:RBLX)’s user growth if the acceleration continues across 2026.

DA Davidson Lowers PT on Roblox (RBLX) Stock

Also, the bigger pressure looming for H2 2026 is the release of GTA VI. The firm believes that the main overlap of users at risk of churning remains in the U.S., Canada, and Europe.

In a different update, Roblox Corporation (NYSE:RBLX) reported that Q1 2026 revenue growth came in at 39% YoY to $1.4 billion, with bookings rising 43% YoY to $1.7 billion. It saw $629 million in operating cash flow, reflecting 42% YoY growth, and $596 million in FCF, up by 40% YoY. Overall, the company’s performance was aided by the combination of robust user and engagement growth, coupled with improvements in monetization throughout all the regions.

Roblox Corporation (NYSE:RBLX) is an immersive gaming and creation platform.

While we acknowledge the risk and potential of RBLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RBLX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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