Roblox (RBLX) has approved its first-ever share buyback program of up to $3 billion of its Class A common stock. This reflects about 9% of its $31.8 billion market capitalization. The video game platform plans to deploy up to $1 billion of this capital over the next year. Following the news, RBLX stock was up over 4% in extended trading.
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The company said it may repurchase shares through open‑market purchases, privately negotiated deals, or trading plans under Rule 10b5‑1. The program has no fixed end date and can be paused or discontinued at any time.
This move is a big change for Roblox, which has mostly used its cash to grow the platform, build out its systems, and fund long‑term projects. Management said the buyback is meant to help offset dilution from employee stock grants while still giving the company plenty of room to invest in the future.
It comes at a complex time, as Roblox works through new child‑safety rules and slower growth guidance. Earlier in May, the company cut its full‑year bookings outlook due to short‑term user friction from new parental controls, age‑check tools, and safety features.
Is RBLX a Good Stock to Buy?
Turning to Wall Street, RBLX stock has a Moderate Buy consensus rating based on 12 Buys and 11 Holds assigned in the last three months. At $68.77, the average Roblox stock price target implies a 54.72% upside potential.
