Arete Upgrade Sends Roblox Stock Up 14%

Arete cited stronger long-term bookings tied to older, age-verified users and a new Incubator program as the reason for its bullish lift to a $95 target.

Overview

Shares of Roblox jumped about 14% after Arete Research upgraded the stock from Neutral to Buy and raised its price target to $95, triggering heavy intraday volume on Monday.
Arete’s upgrade rests on a view that older, age-verified users will spend more and that the company’s Incubator initiative, which launched 26 teams to build adult-focused games, can lift bookings over time.
Roblox’s recent fundamentals are mixed: Q1 EPS beat estimates at -$0.35 but revenue missed at $1.44 billion, and the company has cut 2026 bookings growth guidance to 8%–12% while warning Q2 daily active users will likely fall from Q1 levels.
A legal challenge filed by Arkansas Attorney General Tim Griffin accuses Roblox of misrepresenting child-safety practices and facilitating access to minors; Roblox says it strongly disputes the claims and points to new age checks and chat limits.
Investor dynamics add pressure and support: the board approved a $3 billion buyback in May, institutions own roughly 94.5% of shares, and the market will watch execution on monetization and July 30 earnings for further direction.