UBS Assumes Coverage of Roblox (RBLX) as it Sees Explosive Growth in Creator-Driven Ecosystem

Roblox Corporation (NYSE:RBLX) ranks among the best high growth stocks to buy now. On December 3, UBS began coverage of Roblox Corporation (NYSE:RBLX) with a Neutral rating and a $103 price target. The firm noted Roblox’s place at the center of major interactive entertainment trends, such as games becoming increasingly social, hardware agnostic, and benefiting from AI-lowered hurdles to content production.

UBS emphasized Roblox’s extensive toolkit, which has produced a unique ecosystem for developers and fueled what it refers to as a flywheel of creativity, engagement, and monetization. In line with more general Street projections of 21% and 28%, respectively, the firm believes Roblox Corporation (NYSE:RBLX) will produce a three-year compound annual growth rate of 21% for bookings and 29% for adjusted EBITDA.

Additionally, Roblox Corporation (NYSE:RBLX) reported bookings of $1.92 billion for the third quarter, exceeding the $1.72 billion average estimate. The company also predicted that bookings for the fourth quarter would exceed $2.03 billion at the midpoint, a 44% increase year-over-year.

Although platform improvements would boost user growth and expenditure, UBS stated that it anticipates a growth slowdown in 2026 as the company takes catch-up investments to support its growing user base and follows many viral hits from 2025.

Roblox Corporation (NYSE:RBLX) is an interactive entertainment company. It operates an immersive platform that enables users to create, share, and experience 3D virtual worlds and games.

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