Roblox's Strong Q4 Drives Momentum Into 2026, Morgan Stanley Says

MT Newswires Live02-07 00:06

Roblox (RBLX) delivered strong Q4 results with strength across users, bookings and margins supporting momentum into 2026, Morgan Stanley said in a note Friday.

The firm said daily active users increased 69% year-over-year in Q4, including 33% growth in the US and Canada, while bookings increased 63%.

For 2026, the company guided to bookings growth of between 22% and 26%, which Morgan Stanley said is significant upside to expectations, assuming no contribution from new viral hits.

Morgan Stanley also highlighted management's "constructive responses" to address investor concerns, including AI tools, user retention and age verification.

The firm said Roblox described generative AI and world models as tools supporting creation and gameplay, while noting age verification is expected to be a low single digit headwind to bookings growth.

Morgan Stanley maintained its overweight rating on Roblox and lowered its price target to $140 from $155.

Shares of Roblox were up over 10% in recent Friday trading.

Price: 65.60, Change: +5.06, Percent Change: +8.35

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