Roblox's Recent Cooling of User Growth 'Standard Calendar Noise,' Wedbush Says

MT Newswires Live03-06

Roblox's (RBLX) recent deceleration in daily active users and concurrent users is "standard calendar noise" and does not reflect a shift in fundamental momentum, Wedbush analysts said in a Thursday note.

Wedbush said that, in line with expectations, the "Ski Week" tailwind subsided this week as students in the US returned to schools.

The weekly daily active user growth rate fell to 14% in the week ending March 1 from 18% in the week before, while the weekly concurrent user growth slipped to 52% from 58%, analysts said.

Wedbush said the average concurrent users to daily active users ratio remains elevated, signaling a resilient engagement depth.

Analysts said that a trailing four-week moving average of concurrent users shows continued deceleration following a surge during the summer.

Wedbush has an outperform rating on the stock and a $110 price target.

Price: 67.27, Change: -0.13, Percent Change: -0.19

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