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Benzinga
120 days

Why Roblox's Q1 Has BofA Analyst Optimistic For Long-Term Prospects, Despite Investor Sentiment Split About Growth

1. BofA maintains Buy rating for RBLX with a price target of $79. 2. Roblox expected to gain market share in video games through innovation. 3. Investor sentiment varies; growth expectations range from 23% to over 30%, Q1. 4. Second half of 2025 may see core business growth drop below 20%. 5. Cash flow metrics expected to exceed forecasts from December bookings.

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FAQ

Why Bullish?

Analyst outlook indicates growth potential and market share gains. Historical examples include significant rebounds following positive earnings outlooks.

How important is it?

Strong analyst support raises investor confidence leading up to earnings release. The potential for increased market share could attract more investors.

Why Long Term?

Strength in innovation and cash flow is expected to enhance long-term growth. Past capacities for innovation in gaming have sustained companies over longer periods.

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