Moffettnathanson将Roblox的目标价从63美元上调至91美元，评级从"卖出"上调至"中性"。(格隆汇) ...

Core Viewpoint - Wells Fargo anticipates Roblox's Q3 bookings to surge by 60% to $1.805 billion, exceeding previous guidance of 40%-45% growth, and has raised the target price to $155 [1][2] Group 1: Q3 Performance Expectations - Q3 bookings are expected to reach $1.805 billion, reflecting a 60% year-over-year increase, significantly above the guidance [1] - Concurrent user count (CCU) is estimated to have more than doubled from the previous quarter, increasing by 130%, although bookings per daily user are projected to decline by 30% year-over-year [1] - The strong performance is not limited to the popular game "Grow A Garden," with other bookings expected to grow by 43% [1] Group 2: Q4 Guidance and Projections - Q4 bookings are projected to be between $1.76 billion and $1.785 billion, indicating a year-over-year growth of 29%-31% [2] - Despite a significant slowdown since September, Wells Fargo estimates a minimum of 40% growth in bookings [2] - Q4 advertising revenue is expected to reach $100 million for the first time, although advertising expectations have been adjusted downward due to a more gradual promotional plan [2] Group 3: EBITDA and Financial Metrics - Q3 EBITDA is anticipated to be $465 million, surpassing the expected range of $350 million to $380 million and market expectations of $390 million [2] - The increase in DevEx payments is expected to add $18 million to EBITDA in the first full quarter of implementation [3] - Q4 EBITDA guidance is set between $450 million and $480 million, with market expectations leaning towards the upper end of this range [3] Group 4: Long-term Forecasts - Wells Fargo has raised its 2025 forecasts, expecting bookings, EBITDA, and free cash flow to grow by 3%, 7%, and 8% respectively [3] - For 2026, bookings are projected to grow by 1%, while EBITDA and free cash flow are expected to decline by 1% due to the impact of the announced DevEx activities [3] - The target price has been adjusted from $153 to $155, maintaining a 40x EBITDA multiple for 2027 [3]

Core Viewpoint - Roblox is expected to report strong Q3 earnings on October 30, with a significant increase in bookings and user engagement, despite challenges in developing a second revenue stream [1][2]. Group 1: Q3 Performance - Q3 bookings are projected to be $1.805 billion, representing a 60% year-over-year increase, exceeding the guidance of 40%-45% [1]. - Concurrent user count (CCU) is estimated to have more than doubled from the previous quarter, showing a 130% increase, although bookings per user per day have declined by 30% year-over-year [1]. - The game "Grow A Garden" is expected to generate $191 million in bookings for the quarter, peaking in July, while other games are also projected to see a 43% increase in bookings [1]. Group 2: Q4 Guidance - Q4 bookings are guided to be between $1.76 billion and $1.785 billion, reflecting a year-over-year growth of 29%-31% [2]. - Despite a significant slowdown since September, the platform's growth remains strong, with Q4 advertising revenue expected to reach $100 million for the first time [2]. - Q3 EBITDA is anticipated to be $465 million, surpassing the expected range of $350 million to $380 million and market expectations of $390 million [2]. Group 3: Future Projections - Q4 EBITDA guidance is set between $450 million and $480 million, with market expectations leaning towards the upper end of this range [3]. - The increase in DevEx payments is expected to add $18 million to EBITDA in the first full quarter of implementation [3]. - Forecasts for 2025 have been raised, with bookings, EBITDA, and free cash flow expected to grow by 3%, 7%, and 8% respectively, while 2026 bookings are projected to grow by 1% [3].

Upgrades - RBC Capital upgraded Sealed Air (SEE) to Outperform from Sector Perform with a price target of $48, up from $35, citing stabilization in Protective and continued strength in Food segments, along with over $100 million of cost reductions and G&A optimization [2] - Citi upgraded Tractor Supply (TSCO) to Buy from Neutral with a price target of $62, up from $60, noting same-store sales momentum and earnings growth heading into 2026 [2] - Piper Sandler upgraded PNC Financial (PNC) to Overweight from Neutral with a price target of $220, up from $211, expressing confidence in PNC's near-term prospects due to its conservative guidance and attractive valuation [3] - HSBC upgraded Iqvia (IQV) to Buy from Hold with a price target of $235, up from $195, expecting easing regulatory clouds in pharma to support a re-rating of the shares [3] - MoffettNathanson upgraded Roblox (RBLX) to Neutral from Sell, acknowledging that user metrics have significantly improved driven by new viral experiences [4] Downgrades - Jefferies downgraded Freshpet (FRPT) to Hold from Buy with a price target of $53, down from $97, citing an abrupt and persistent growth slowdown and lack of near-term catalysts [5] - HSBC downgraded Bloom Energy (BE) to Hold from Buy with a price target of $100, up from $44, while expecting consensus estimates to revise higher but awaiting a better entry point [5] - RBC Capital downgraded Graphic Packaging (GPK) to Sector Perform from Outperform with a price target of $21, down from $25, due to oversupply in bleached paperboard limiting price increases [5] - JPMorgan downgraded RenaissanceRe (RNR) to Neutral from Overweight with an unchanged price target of $303, adopting an incrementally cautious view on reinsurance pricing [5] - Northland downgraded Nutanix (NTNX) to Market Perform from Outperform with a price target of $76, highlighting risks related to VMware customer migrations and competition from Red Hat [5]

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its ...

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Group 1 - Roblox stock (NYSE: RBLX) has fallen 9% in the past five trading days due to a Wall Street analyst's pessimistic assessment and insider selling by a company director [2] - Despite the recent dip, RBLX stock remains relatively expensive, indicating a notable level of risk for investors [2] - The stock has historically performed worse than the S&P 500 index during economic downturns, both in terms of decline magnitude and recovery speed [2] Group 2 - RBLX stock has dropped significantly and is considered costly, presenting considerable risk in relying on a single stock [3] - A diversified approach, such as the Trefis High Quality Portfolio, has outperformed its benchmark with returns exceeding 91% since inception [3] - The Trefis Reinforced Value (RV) Portfolio has also outperformed its all-cap stocks benchmark, providing strong returns for investors [5][6] Group 3 - RBLX offers an online entertainment platform that provides free tools for developers to create, publish, and manage 3D experiences globally [4] - The stock experienced a peak-to-trough decline of 82.8% from $134.72 on November 19, 2021, to $23.19 on May 10, 2022, compared to a 25.4% decline for the S&P 500 [5] - The stock fully rebounded to its pre-crisis peak by July 31, 2025, reaching a high of $141.56 on September 29, 2025, and is currently trading at $122.69 [5]

Core Insights - Roblox has a strong user engagement with over 100 million daily active users, but struggles with profitability and high losses while maintaining a premium valuation [1][2] Group 1: Revenue Diversification - Roblox primarily generates revenue from in-game currency sales, making it reliant on player spending, thus advertising could provide a significant opportunity for diversification and profitability [3][4] - The introduction of immersive ad formats and partnerships with Google Ad Manager aims to facilitate brand campaigns and enhance revenue streams for developers [4] - A modest increase of $10 in annual ad revenue per user could yield over $1 billion in additional high-margin revenue, indicating a substantial growth opportunity [5][6] Group 2: User Demographics - The platform's popularity among younger users presents challenges, as they tend to spend less and pose regulatory hurdles [7][8] - The over-13 age group accounted for 71.4 million of the 111.8 million daily active users, a significant increase from 36.8 million two years prior, highlighting the importance of engaging older users for higher spending and advertising appeal [8][9] - Providing more sophisticated experiences could enhance user lifetime value and prevent churn as users mature [9] Group 3: International Growth - Roblox's global expansion is notable, but monetization in international markets lags behind the U.S., where average bookings per daily active user were $40.7 compared to $4.95 in Asia-Pacific and $11.49 in Europe [10][12] - To improve international monetization, Roblox needs to localize content, enhance payment systems, and collaborate with regional brands [11][12] - Increasing international spending, even modestly, could unlock significant growth potential given that only 20.6 million of the 111.8 million daily active users are from the U.S. and Canada [12] Group 4: Investment Implications - The company has demonstrated the ability to attract a large audience, but converting engagement into earnings is crucial for profitability [13] - Investors should focus on the company's ability to execute on building a credible advertising business, retaining and monetizing older users, and increasing international spending [15]

Core Insights - Roblox is experiencing concerns regarding its in-game currency sales, leading to a significant decline in its stock price [1] - An analyst's pessimistic update highlights slowing bookings growth, which is critical for the company's financial health [2][3] Company Performance - Daily active users (DAUs) continue to grow robustly, indicating strong engagement among players [3] - However, the growth rate of bookings from in-game currency, Robux, has significantly decreased, particularly in the U.S. market [3][4] Financial Metrics - U.S. bookings growth is estimated to be in the low-30% range year-over-year for September, down from mid-to-high-40% in August and over 50% in July [4] - This decline in growth rates raises concerns among investors, as maintaining high growth is crucial for the company's valuation [5]

U.S. stocks traded higher midway through trading, with the Dow Jones index gaining more than 350 points on Friday.The Dow traded up 0.82% to 46,899.42 while the NASDAQ rose 0.17% to 22,884.01. The S&P 500 also rose, gaining, 0.41% to 6,742.96.Check This Out: Top 3 Financial Stocks That Could Blast Off In OctoberLeading and Lagging SectorsUtilities shares jumped by 1.9% on Friday.In trading on Friday, communication services stocks fell by 0.7%.Top HeadlineThe ISM services PMI declined to 50 in September from ...