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Roth Capital Upgrades Roblox (RBLX) to Buy

Roblox Corporation (NYSE:RBLX) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.

On February 9, Roth Capital upgraded its recommendation on Roblox to a Buy (from Neutral) and bumped up its target price on the stock by 7.7% to $84 (from $78). Better-than-expected guidance from management regarding bookings growth for 2026 onwards (above 20% annually over the next several years) was the main catalyst for this rating upgrade. The firm added that RBLX’s improving development tools, which lead to the production of higher-quality games and, in turn, higher revenue (a “strong, sustainable virtuous cycle,” as Roth’s analyst described it), are key to sustaining growth. Roth Capital concluded its research note by reiterating that Roblox is an attractive investment at the current share levels.

Roblox released its Q4-2025 results and 2026 guidance on February 5. According to this release, daily active users (DAU) grew 69% YoY to 144 million, while hours engaged grew even faster, up 88% YoY to 35 billion, suggesting existing users spent more time. The robust growth in operational metrics translated into rapid topline growth, with revenue up 43% YoY to $1.4 billion and bookings up 63% YoY to $2.2 billion.

The company expects the strong Q4 figures to carry over to 2026. Management guidance indicates revenue growth of 32% to 37% in Q1-2026 and 23% to 29% for the full year 2026. Bookings, meanwhile, are projected to grow 40% to 44% in Q1-2026 and 22% to 26% for the full year 2026.

Roblox Corporation (NYSE:RBLX) provides online gaming services through its platforms: Roblox Client, Roblox Studio, and Roblox Cloud. The company is based in San Mateo, California, and was founded in March 2004 by Erik Cassel and David B. Baszucki.

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.

READ NEXT: 12 Best Cheap Stocks to Buy Right Now and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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