Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [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 it is positioned to outperform the market [3] - Over the past week, RBLX shares increased by 11.51%, significantly outperforming the Zacks Gaming industry, which rose by 4.17% [5] - In a longer timeframe, RBLX shares have risen by 18.52% over the past month, compared to the industry's 4.15% [5] - Over the last quarter, RBLX shares increased by 2.8%, and they have surged by 84.79% in the past year, while the S&P 500 has seen declines of -6.91% and a modest increase of 13.12% respectively [6] - The average 20-day trading volume for RBLX is 7,318,857 shares, indicating strong trading activity [7] Earnings Outlook - Recent earnings estimate revisions for RBLX show positive momentum, with three estimates moving higher and none lower over the past two months, raising the consensus estimate from -$1.49 to -$1.47 [9] - For the next fiscal year, two estimates have increased, with no downward revisions noted [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, RBLX is recommended as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [10][11]

Core Viewpoint - Roblox aims to capture 10% of the gaming market in consumer spending, citing its low-cost entertainment model and historical resilience during economic downturns [1][4]. Financial Performance - The company's revenue increased by 29% year over year, reaching approximately $1.035 billion, while bookings rose by 31% to $1.207 billion [3]. - Average daily active users grew by 26% to 97.8 million, and average monthly unique payers increased by 29% to 20.2 million [3]. Market Position and Strategy - Roblox currently holds 3% of the gaming market and plans to expand by diversifying its platform to support various genres, including sports, racing, role-playing, and battle games [4]. - The growth in bookings is no longer concentrated among a few popular experiences; instead, experiences ranked No. 11 to No. 50 have seen growth accelerate from 5% to over 100% [5].

Group 1 - Roblox reported a quarterly loss of $0.32 per share, better than the Zacks Consensus Estimate of a loss of $0.41, and an improvement from a loss of $0.43 per share a year ago, representing an earnings surprise of 21.95% [1] - The company achieved revenues of $1.21 billion for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 5.35%, and up from $923.76 million in the same quarter last year [2] - Roblox has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has increased approximately 15.9% since the beginning of the year, contrasting with a decline of -5.3% in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for estimate revisions for Roblox is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3 - The current consensus EPS estimate for the upcoming quarter is -$0.32 on revenues of $1.17 billion, and for the current fiscal year, it is -$1.47 on revenues of $5.29 billion [7] - The Gaming industry, to which Roblox belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] Group 4 - Flutter Entertainment, another company in the gaming industry, is expected to report quarterly earnings of $1.66 per share, reflecting a year-over-year change of +1560%, with revenues anticipated to be $3.7 billion, up 8.9% from the previous year [9][10]