Roblox Stock Has Halved In 1 Year But This Analyst Sees Path For Continued Monetization Growth In US

Needham analyst Bernie McTernan maintained Roblox Corp RBLX with a Buy and cut the price target from $55 to $53 after lower-than-expected August bookings caused him to reduce his estimates.
He expressed his three key takeaways from the company's investor day.
He highlighted the commentary on advertising, which he saw as a substantial opportunity for RBLX.
He emphasized product enhancements, spinning the developer flywheel and enabling larger teams to create on RBLX.
He also acknowledged that "All ages engaging on the platform" is happening, as over 13 of the largest and fastest-growing demographic are engaged.
McTernan said RBLX is an evolving platform that is simultaneously growing internationally and shifting its age cohorts older.
As such, the TAM is shifting from IAP from 5-12-year-olds in the U.S. to global gaming spending to broader entertainment, apparel, and advertising budgets.
As a result, he still saw a path for continued monetization growth in the U.S. and expects international to catch up, similar to other entertainment companies.
Price Action: RBLX shares traded lower by 8.18% at $39.93 on the last check Friday.
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