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Wells Fargo Trims Roblox Price Target After Beat as Analyst Optimism Builds

The bank maintained Overweight after results beat forecasts with guidance that outpaced expectations.

Overview

  • Wells Fargo cut its Roblox price target to $97 from $107 while reiterating Overweight, citing Q4 2025 results and 2026 outlook that exceeded expectations.
  • Roth Capital upgraded Roblox to Buy on February 9 and raised its target to $84, pointing to stronger-than-expected bookings guidance and improving development tools.
  • Roblox reported Q4 2025 DAUs up 69% to 144 million, hours engaged up 88% to 35 billion, revenue up 43% to about $1.415 billion, and bookings up 63% to $2.2 billion.
  • Management guided for Q1 2026 revenue growth of 32%–37% and bookings growth of 40%–44%, with full-year 2026 revenue up 23%–29% and bookings up 22%–26%.
  • Roblox remains unprofitable as its Q4 net loss widened to about $318 million, and commentators note shares trade below $70 with $150 viewed as a difficult resistance level.