JPMorgan analyst Cory Carpenter reiterated a Neutral rating and $40.00 price target on Roblox Corp. (NYSE: RBLX)

The analyst comments "Viral engagement inflected higher this past weekend. Peak Platform CCUs reached 28.7M on Saturday, the highest level since mid-December of last year (vs. 25.1M last weekend — Figure 1) while weekday engagement declined ~6% W/W on average (vs. ~flat last week). On a Y/Y basis, Avg. Peak Platform CCUs have declined -11% September-to-date (vs. -25% in August) which we largely attribute to tougher Y/Y comparisons and back-to-school seasonality continuing to impact weekday engagement (Figure 2). From a viral engagement perspective — Steal An Egg peak CCUs inflected to 14.3M on Saturday (vs. 9.9M last week) — which, in our view, continues to reflect ongoing RFY algo optimizations across age cohorts and between monetization & retention (Figure 4). Beyond Steal An Egg, there was a new viral experience among the top 10 — Ride A Pet — which saw ~800k CCUs in its second week (vs. ~5k last week — Figure 5). Our analysis suggests that Tail engagement declined -19% W/W (vs. +11% last week), which we think was largely driven by lower weekday engagement driving avg. Platform CCUs are lower and viral engagement inflecting higher this week (Figure 3). We are encouraged by the continued progress across RFY algo optimizations, which we believe is reflected across the recent strength of viral engagement. Please reach out for an XLS of our weekly engagement tracker — available upon request."

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Shares of Roblox Corp. closed at $47.82 yesterday.