Roblox Usage Climbs Among US Teens: Analyst Raises Target To $54

Roblox Corporation RBLX shares are trading higher on Wednesday. Piper Sandler analyst Thomas Champion raised the price target to $54.00 from $48.00 while maintaining the Overweight rating.

The analyst surveyed ~13K teens across the U.S. during this fall and noted that teen active usage of Roblox rose to 46%, up from 34% and 31% in the previous two surveys, with improvements seen across all frequency levels.

Champion also writes that 17% of teens have never played Roblox, compared to 22% in the previous survey.

Additionally, 37% of teens previously played Roblox but no longer do, a reduction from 44% and 45% in prior surveys, adds the analyst.

Overall, the analyst says that the frequency of play is rising, with more teens engaging with Roblox on a monthly, weekly, and daily basis compared to the previous survey.

Yesterday, Hindenburg issued a short report alleging that Roblox misled investors, overstating daily active users by 25-42% and engagement hours by over 100%.

The report accused Roblox of prioritizing growth metrics over child safety by cutting content moderation costs.

In response, Roblox issued a statement calling the financial claims “misleading,” while denying allegations that it underreports issues related to child safety on the platform.

Roblox asserted that its methodology for calculating DAUs is designed to present an accurate reflection of platform engagement.

Investors can gain exposure to the stock via Bitwise Funds Trust Bitwise Web3 ETF BWEB and Roundhill Ball Metaverse ETF METV.

Price Action: RBLX shares are up 3.97% at $42.12 at the last check Wednesday.

Photo via Shutterstock

Read Next:

• Short Seller Alleges Roblox Facilitated ‘Widespread’ Child Abuse, ‘Potentially Played A Role’ In Mass Shootings