Roblox (RBLX) Jumps 8% as Firm Gains Compelling Edge in Video Game Sector

We recently published 10 Big Names With Surprising Gains. Roblox Corp. (NYSE:RBLX) is one of the top performers of Monday.

Roblox saw its share prices grow by as much as 8 percent on Monday before paring gains to close at $124.81 apiece as investors took path from an investment firm’s bullish stance, saying that it was  “the most compelling growth opportunity in the video game sector.”

In a market note, Wedbush maintained its “outperform” rating and price target of $165 on Roblox Corp.’s (NYSE:RBLX) stock amid its on-hit games that could drive platform growth, developer incentives, infrastructure improvements, and AI-driven discovery features.

Roblox (RBLX) Jumps 8% as Firm Gains Compelling Edge in Video Game Sector

Image: David Baszucki (Courtesy of Roblox)

The price target represents a 32-percent upside potential from its latest closing price.

Additionally, Wedbush said that Roblox Corp.’s (NYSE:RBLX) expansion into new genres and tapping the older demographics has raised its potential for advertising opportunities, while pricing optimization across games and regions continues to improve revenue streams.

While Wedbush acknowledges risks from ongoing legal challenges over the company’s alleged child sexual exploitation, the investment firm highlighted Roblox Corp.’s (NYSE:RBLX) track record in quick response with meaningful actions to create a safe environment across all age groups.

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.