Core Viewpoint - Roblox Corporation (NYSE:RBLX) is identified as an under-the-radar stock with significant upside potential heading into 2026, despite a recent share price decline of over 19% following its fiscal Q3 2025 earnings release [1] Financial Performance - For fiscal Q3 2025, Roblox reported a revenue increase of 70.30% year-over-year, reaching $1.92 billion, which exceeded consensus estimates by $221.89 million [3] - The company reported an EPS of negative $0.37, which was better than expected by $0.14 [3] - Management anticipates a full-year net loss between $1.10 billion and $1.13 billion, higher than the Bloomberg consensus estimate of $1.09 billion [3] - For fiscal Q4, the expected net loss is projected to be between $1.35 billion and $1.40 billion, also above the $1.34 billion estimate [3] Analyst Ratings - Brian Pitz from BMO Capital reiterated a Buy rating on Roblox with a price target of $155 on November 19 [2] - Cory Carpenter from J.P. Morgan also maintained a Buy rating on November 17, although no price target was disclosed [2] Market Engagement - Analyst Carpenter noted that Roblox's platform is gaining traction, with a year-over-year increase in user engagement [4] - Popular games on the platform, such as Steal a Brainrot and 99 Nights in the Forest, are expected to continue gaining momentum, supporting overall platform performance [4] Company Overview - Roblox operates an interactive platform that allows users to create, play, and socialize in immersive 3D experiences developed by a global community of creators [4]

Core Insights - Roblox has raised its annual bookings forecast for the third time this year, driven by strong in-game spending on popular titles [1] - The company has surpassed 150 million daily active users, indicating robust engagement and growth in its user base [1] Financial Performance - The increase in bookings forecast reflects a positive trend in revenue generation from in-game purchases [1] - Viral titles such as "Steal a Brainrot" have significantly contributed to the company's financial success [1]

Group 1 - Roblox Corporation (NYSE:RBLX) is included in the Renaissance Technologies Portfolio as one of the 10 biggest stocks [1] - JPMorgan raised the price target for Roblox Corporation to $160 from $150, maintaining an Overweight rating [2] - The increase in engagement on Roblox's platform during Q2 was driven by the game "Grow a Garden," with expectations for continued momentum in Q3 due to upcoming games [2][3] Group 2 - Concurrent users on Roblox reached 43 million in late August, surpassing the previous record of 32 million [3] - JPMorgan anticipates that the strong platform engagement will lead to a 'healthy upside' to management's guidance for Q3 [3] - The stock has gained 130% year-to-date as of September 23, 2025 [4]

Group 1: Roblox Performance - Roblox is experiencing significant growth with player counts showing triple-digit year-over-year growth rates, despite August typically being a slow month for the gaming industry [1][2] - The platform is benefiting from several "megascale experiences" that consistently attract millions of players, including titles like "Grow a Garden," "Steal a Brainrot," and "99 Nights in the Forest" [2] - Roblox stock is rated as outperform with a price target of 130, and it rose nearly 2% to 135.18 in midday trades [2] Group 2: Electronic Arts Performance - Electronic Arts (EA) is receiving positive feedback for its upcoming game "Battlefield 6," which is set to release on October 10, and is anticipated to be a major title for the industry [3] - EA's "Madden NFL 26" has also garnered positive feedback since its release on August 14 [4] - EA stock ranks third out of 25 stocks in the Computer Software-Gaming industry group, with an IBD Composite Rating of 77 out of 99, while Roblox ranks fourth with a Composite Rating of 75 [5]