Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1]. Company Summary: Roblox (RBLX) - Roblox currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2]. - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [3]. - Over the past week, RBLX shares have increased by 17.8%, outperforming the flat performance of the Zacks Gaming industry [5]. - In a longer timeframe, RBLX shares have risen by 81.02% over the past quarter and 192.6% over the last year, significantly outperforming the S&P 500's gains of 19.69% and 14.71% respectively [6]. - The average 20-day trading volume for RBLX is 7,782,626 shares, indicating a bullish trend as the stock is rising with above-average volume [7]. Earnings Outlook - In the past two months, five earnings estimates for RBLX have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$1.41 to -$1.36 [9]. - For the next fiscal year, five estimates have also moved upwards without any downward revisions [9]. Conclusion - Considering the positive momentum indicators and earnings outlook, RBLX is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a strong candidate for near-term investment [10][11].

Regulatory Landscape & Child Safety - The Senate Commerce Committee is considering an update to the Children's Online Privacy Protection Act (COPPA), referred to as COPPA 2.0, which would expand online protections to all kids and teenagers under the age of 17 [1] - Roblox supports COPPA 2.0 and other legislation to keep kids safe online [5][16] - Roblox supported the California age-appropriate design code because the company was already implementing its requirements [16] Roblox's Safety Measures - Safety has been a top priority for Roblox since day one, with continuous innovation in safety and civility [5] - Roblox has almost 100 million daily active users [5] - Roblox filters all communication and does not allow image sharing [8][11] - Roblox uses AI for age estimation and to moderate communication [8] - Roblox introduced "trusted connections," allowing users to chat more freely with people they know and trust [8] - Roblox highlights that all text is filtered on its platform [13] Challenges & Criticisms - Roblox has faced criticism regarding the presence of predators on the platform [3][9] - The National Center on Sexual Exploitation for Children has stated that Roblox has become a tool for pedophiles [9] - Bloomberg conducted an investigation making similar charges [9]

Group 1 - Roblox is part of the Consumer Discretionary sector, which includes 254 companies and is currently ranked 14 in the Zacks Sector Rank [2] - Roblox has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Roblox's full-year earnings has increased by 6.7% over the past three months, reflecting improved analyst sentiment [3] Group 2 - Year-to-date, Roblox has gained approximately 115.2%, significantly outperforming the average gain of 10.6% for the Consumer Discretionary sector [4] - Roblox is categorized under the Gaming industry, which consists of 39 companies and is currently ranked 79 in the Zacks Industry Rank [5] - The Gaming industry has seen an average gain of about 19% this year, indicating that Roblox is also outperforming its immediate industry peers [5] Group 3 - Another notable stock in the Consumer Discretionary sector is Roku, which has increased by 25.5% year-to-date [4] - Roku's consensus EPS estimate has risen by 31.9% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - Roku belongs to the Broadcast Radio and Television industry, which has 18 stocks and is currently ranked 188, with an industry gain of 27.8% since the beginning of the year [6]

Age-Based Communication Technology - Roblox is innovating on safety and stability with age-based communication, especially for teens aged 13-17, focusing on trusted connections and age estimation [1][2] - The technology aims to enable freer communication among teens while still monitoring for critical harms, preventing them from migrating to less moderated platforms [2] - AI is used for age estimation, with conservative leaning to enable freer, yet monitored communication [3][4] - Historically, moderation has always been a foundation, including AI and human moderation, and age estimation is used to slightly free up communication [5] Game Performance and User Engagement - "Grow a Garden" had over 20 million concurrent players, believed to be a record for any game in history [8][10][11] - The new technology allows validated trusted connections to communicate more freely within games like "Grow a Garden," enhancing user experience [8][9] - Roblox had over 30 million people playing at the same time across all games [10] Infrastructure and Scalability - Roblox builds its own data centers for better performance, reliability, and cost [12] - Roblox partners with Azure, Amazon, NWC, and GCP to burst into their cloud at peak times [13] Safety and Future Strategy - Roblox prioritizes safety and civility and believes age estimation is the future of communication on social platforms, especially for teens [14][15] - Roblox aims to capture 10% of the market by focusing on safety and technological capabilities [14] - Roblox is proactively addressing safety concerns for the 13-17 age segment, viewing it as equally important as other age groups [16]

Roblox is adding new safety features, including an age-estimation tool that relies on video selfies, in an effort to better protect its kid-heavy user base https://t.co/VQAyPtSfjG ...

Roblox introduces new safeguards for teens, including age estimation tech | TechCrunch https://t.co/JEUoBQNM2Z ...

Core Viewpoint - Roblox is implementing age-estimation technology to enhance user safety and provide tailored features for users aged 13 and over, coinciding with the launch of its "trusted connections" feature for private chats [1][3][5]. Group 1: Age-Estimation Technology - Users over 13 will be prompted to use facial-analysis software to estimate their age for accessing the new "trusted connections" feature [1]. - The age-screening technology is provided by Persona and is part of compliance with new age-verification laws in several states [2]. - The age-estimation software is optional; users can still verify their age using government-issued ID [7]. Group 2: Trusted Connections Feature - The term "friends" will be replaced with "connections," allowing users to communicate without certain content filters [4]. - Teenagers aged 13-17 must use a QR scan or contact importer tool to add users over 18 as trusted connections [5]. - The feature aims to keep teens and adults engaged on Roblox for open communications rather than moving to other platforms [5]. Group 3: Monitoring and Privacy Tools - The company will continue to monitor conversations for critical harms [6]. - New privacy tools will allow users to track their time spent on Roblox, set daily limits, and manage online status [8]. - Parents can set up linked accounts to monitor their teens' connections and activity on the platform [8]. Group 4: Industry Context - Roblox and Discord are facing legal challenges over allegations related to online safety for minors [9]. - Other platforms, like Reddit, are also adopting age-verification technology to comply with regulations [9].

almost every single equity play ive taken looks exactly like this, months+years of sideways while fundamentals improve & then just have alerts set on the range breakoutdidnt post roblox [ $RBLX] when it triggered but nearly identical chart https://t.co/2q3LKpohhWAnsem (@blknoiz06):also still like $RKLB space cadets stonk coin https://t.co/cHHEqGPZRd ...

Company Overview - Roblox is likened to a "zoomer Minecraft AI world equivalent" [1] - Rocket Lab is referred to as a "space race stonk" [1] Stock Market - The report mentions the stock tickers $RBLX for Roblox and $RKLB for Rocket Lab [1]

Company Performance - Roblox closed at $104.94, down 2.62% from the previous trading session, underperforming the S&P 500 which lost 0.07% [1] - Over the past month, Roblox shares gained 15.35%, outperforming the Consumer Discretionary sector's gain of 5.29% and the S&P 500's gain of 3.94% [1] Earnings Projections - Roblox is set to release earnings on July 31, 2025, with projected EPS of -$0.36, indicating a 12.50% decline from the same quarter last year [2] - Revenue is expected to reach $1.22 billion, reflecting a 27.52% increase compared to the equivalent quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates predict earnings of -$1.38 per share and revenue of $5.43 billion, representing increases of 4.17% and 24.22% respectively from the previous year [3] Analyst Sentiment - Changes in analyst estimates for Roblox are crucial as they reflect near-term business trends, with upward revisions indicating positive sentiment towards the company's operations [3] Zacks Rank and Performance - The Zacks Rank system, which evaluates estimate changes, currently ranks Roblox as 2 (Buy), with a 2% increase in the consensus EPS estimate over the last 30 days [5] - Historically, 1 ranked stocks in the Zacks Rank system have yielded an average annual return of +25% since 1988 [5] Industry Context - The Gaming industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 67, placing it in the top 28% of over 250 industries [6] - Strongly rated industries, particularly those in the top 50%, tend to outperform weaker ones by a factor of 2 to 1 [6]