<div id="readability-page-1"><div><h2>Recent Performance And Why The Stock Is In Focus</h2> <p>Roblox (RBLX) has quietly pulled back, with the stock down about 6% over the past day, 8% this week, and roughly 13% over the past month, drawing fresh attention to its valuation.</p> <p>See our latest analysis for Roblox.</p> <p>Those near term share price losses sit against a much stronger backdrop, with the stock still boasting a solid year to date share price return and a standout three year total shareholder return. This suggests long term momentum is intact even as sentiment cools in the short run.</p> <p>If Roblox's recent pullback has you rethinking your exposure to digital platforms, it could be a good moment to explore other high growth tech and AI names via high growth tech and AI stocks.</p> <p>With Roblox still up strongly over the past year but trading at a discount to analyst targets, investors now face a key question: Is this pullback a fresh buying opportunity, or is future growth already priced in?</p> <h2>Most Popular Narrative: 39.2% Undervalued</h2> <p>With Roblox closing at $88.51 versus a narrative fair value near $145.63, the valuation case leans heavily on aggressive growth and monetization assumptions.</p> <blockquote> <p><em>The evolving digital economy on Roblox, including expanded monetization opportunities like digital goods, Rewarded Video ads, and a systematized IP licensing marketplace, is expected to unlock new high margin revenue streams and enhance net margins as adoption matures. Success in increasing the share of older users (with 64% of DAUs over 13, and viral hits skewing older) positions Roblox to tap into higher monetizing demographics, supporting higher ARPU and improved topline growth prospects.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious how a fast scaling user base, richer ad formats, and structurally higher margins all combine into that punchy upside case? The narrative connects them in one bold, numbers driven roadmap.</p> <p><strong>Result: Fair Value of $145.63 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this upside hinges on sustained viral hits and infrastructure spending remaining efficient, as slower engagement or rising costs could quickly dent that bullish roadmap.</p> <p>Find out about the key risks to this Roblox narrative.</p> <h2>Another Lens On Valuation</h2> <p>Our SWS DCF model paints a more measured picture, suggesting Roblox is only about 6.5% below its fair value at $94.67, far less dramatic than the hefty narrative upside. If cash flows already justify most of today’s price, how much runway is really left?</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0e9e12d9-c923-4427-8c00-50fd1eb0f4bf/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0e9e12d9-c923-4427-8c00-50fd1eb0f4bf/chart/dcf"/><figcaption>RBLX Discounted Cash Flow as at Dec 2025</figcaption></figure><h2> Build Your Own Roblox Narrative</h2> <p>If this view does not quite match your own or you prefer hands on research, you can build a customized narrative in under three minutes, Do it your way.</p> <p>A great starting point for your Roblox research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Ready For Your Next Investing Move?</h2> <p>Do not stop at one opportunity. Use the Simply Wall St Screener now to uncover fresh ideas other investors may overlook and stay one step ahead.</p> <ul> <li>Capture potential opportunities by scanning these 908 undervalued stocks based on cash flows that the market may be mispricing based on future cash flows.</li> <li>Capitalize on innovation by targeting these 26 AI penny stocks positioned at the front line of artificial intelligence adoption.</li> <li>Strengthen your income stream by focusing on these 13 dividend stocks with yields &gt; 3% offering recurring cash returns.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

RBLX

<p>Roblox (RBLX) has seen a recent stock pullback, down 6% in a day, 8% this week, and 13% over the past month. Despite this, the stock has strong year-to-date and three-year returns. Analysts debate if this pullback is a buying opportunity or if future growth is priced in. The stock is currently undervalued at $88.51 compared to a fair value of $145.63. However, a DCF model suggests it's only 6.5% below fair value at $94.67. Investors should consider the risks and potential of Roblox's evolving digital economy.</p>

Roblox (RBLX): Rethinking Valuation After the Stock’s Recent Pullback