Roblox Corp. (RBLX) October Trends Well Ahead of Expectations, Morgan Stanley Reiterates Overweight

Morgan Stanley analyst Brian Nowak reiterated an Overweight rating and $88.00 price target on Roblox Corp. (NYSE: RBLX) after the company reported a strong 3Q but also Oct trends that were significantly ahead as, ex-Halloween outage, rev/DAU/hours came in 7%/17%/10% above expectations.

The analyst stated "RBLX's 3Q results came in above our expectations with DAUs and time spent 3%/1% above us and bookings in line. More importantly, October monthly results trended significantly ahead as, excluding the impact of the Halloween weekend outage (which our numbers did not include), October bookings/DAUs/hours would have been 7%/17%/10% above. Near-term this is bullish for 4Q as October is typically the trough of 4Q engagement...but bigger picture, we think these trends speak to RBLX’s better than appreciated growth runway and ability to continue to grow its user base, engagement and monetization…even through reopening. This growing engaged user base is also critical to RBLX’s ability to build upon some of the bull-case opportunities such as advertising/sponsorships/e-commerce."

For an analyst ratings summary and ratings history on Roblox Corp. click here. For more ratings news on Roblox Corp. click here.

Shares of Roblox Corp. closed at $78.26 yesterday.

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