stock analysis

Minneapolis (www.aktiencheck.de) – Roblox stock analysis by Piper Sandler:

Current rating

Piper Sandler has a price target for Roblox Corporation (ISIN: US7710491033, WKN: A2QHVS, NYSE symbol: RBLX) of 48 on 54 USD raised and remains at the classification “overweight”. This follows a comprehensive survey of 13,000 teenagers in the US that highlighted positive developments for Roblox.

Key survey results

– Active users: 46% of teenagers surveyed actively use Roblox. This represents a significant increase compared to the spring survey, where the proportion was around 34%. There is also a significant increase compared to the previous year (31%).
– Increase in usage frequency: Roblox usage has increased across all frequencies, indicating broader and deeper user engagement.

Comparison to competitors

– TikTok and Instagram: Both platforms were able to further expand their lead in frequency of use.
– Snapchat (SNAP): In contrast, Snapchat has continued to lose ground as the preferred app among young people.

Financial Impact and New Estimates

Piper Sandler has revised up estimates for Roblox based on the survey. The price target increase reflects improved youth user engagement and growth potential. Roblox remains a major player in social gaming and the metaverse, particularly among the youth demographic.

Conclusion

The positive survey results indicate that Roblox has been able to expand its appeal and market penetration in the teen segment. Rising user engagement suggests robust growth momentum, justifying Piper Sandler’s increased price target. Given these trends, the share remains attractive from an analyst perspective and continues to be rated “overweight”.

Risk factors

– Competition: Roblox faces intense competition from established platforms such as TikTok and Instagram, which have also been able to increase their usage frequency among young people.
– User retention: Although usage numbers have increased, Roblox needs to continually invest in content and features in order to retain users in the long term and develop new target groups.
– Macroeconomic uncertainties: Like all technology and growth stocks, Roblox is also affected by possible macroeconomic factors such as rising interest rates and declining consumer sentiment.

Overall, however, Roblox remains an attractive investment, particularly due to its strong position in the high-growth teen segment. (Analysis from October 9th, 2024)

Please also note information on the obligation to disclose conflicts of interest in accordance with Directive 2014/57/EU and corresponding EU regulations at the following link. (09.10.2024/ac/a/n)

Disclosure of possible conflicts of interest:

You can view potential conflicts of interest on the site of the creator/source of the analysis.

Snap shares posted slight losses in the New York trading session on Tuesday afternoon. Despite a decline of 0.2% in the latest trading session, the stock shows a remarkable year-on-year performance with an increase of 24.80%. This positive trend reflects investors’ continued interest in the social media company.

Current challenges and future prospects

Snap is currently the focus of the EU Commission, which is requesting information about the company’s recommendation systems. This regulatory attention could impact future business strategy. Despite the short-term fluctuations, Snap’s innovative platform and investments in AR technology remain well-positioned to benefit from long-term trends in the digital advertising industry.

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Snap shares fell in New York trading on Monday afternoon. Despite a positive annual development of +22.51%, the social media company’s paper recently suffered losses. The current price is $10.48, a daily loss of 2.96%. This continues the negative trend of the last 30 days, in which the share already lost 2.38%.

Financial indicators in focus

Despite the recent decline, Snap stock remains 20.86% above its 52-week low. The price-to-sales ratio (P/S) is currently 3.20, indicating possible overvaluation. The price-cash flow ratio (P/CV) is currently 59.71, which can be classified as high compared to the industry. Investors should take these metrics into account when making their investment decisions.

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