Is It Too Late to Buy Roblox Stock (RBLX) After 52-Week High Boost?

Roblox (RBLX) stock reached a new 52-week high, reaching its highest level since late 2021. The rally reflects renewed confidence in the platform’s expanding user base, monetization efforts, and push into immersive digital experiences. However, with shares up nearly 180% over the past year, investors are raising questions about the growth ahead.

Overall, analysts remain moderately bullish on the stock but expect a downside of over 20% following its recent surge.

What’s Happening with RBLX Stock?

RBLX stock gained 3.4% on Monday, driven by growing investor optimism around a surprisingly basic gardening game, reportedly built in just three days by a 16-year-old. The game, called Grow a Garden, lets players plant seeds, sell their harvest for in-game currency (called sheckles), and reinvest in more seeds or animals. The game, featuring Roblox’s signature blocky graphics, has quickly become one of the most popular games worldwide.

Last week, Wedbush Securities analyst Michael Pachter highlighted that the Grow a Garden game is fueling a major boost in user engagement for Roblox as summer vacation kicks off. He also stated that the game has driven a 75% increase in concurrent users since December and could help make Q2 2025 a record-breaking quarter, according to Pachter.

Is Roblox a Good Stock to Buy?

Roblox’s growing platform supports multiple revenue streams. Its main source of income comes from users purchasing Robux—the in-game currency used to buy avatar upgrades, abilities, clothing, and other virtual items. Additional revenue comes from premium subscriptions, digital advertising, and a share of royalties from developer-created games.

While this ecosystem appears strong, Roblox’s financial performance tells a more cautious story. Despite generating over $1 billion in revenue in Q1, the company continues to post losses. This continued unprofitability may limit its appeal to investors seeking strong returns.

Overall, Roblox has built a fast-growing ecosystem and is poised for further revenue growth as user numbers rise. However, with ongoing losses, a high valuation, and much of its growth likely priced in, the stock may no longer offer life-changing returns for small investors.

What is Roblox’s Price Target?

According to TipRanks, Wall Street has a Moderate Buy consensus rating on RBLX stock, based on 15 Buys, five Holds, and two Sells assigned in the last three months. The average Roblox stock price target of $79.41 implies a 21% upside potential.

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