Morgan Stanley has reaffirmed its Overweight rating on Roblox Corporation (NYSE:RBLX) early last week, according to The Fly. The firm reduced its price target from $170 to $155 in a note on the North America Internet group.
The review stated that performance in the internet sector in 2026 is expected to be thematically similar to 2025. Companies showing strong returns from investments in GenAI or GPU-enabled technologies are likely to be favored by investors, as measured by Return on Invested Capital (ROIC).
Morgan Stanley identified subsectors facing heightened disruption risk, which will command lower valuation multiples. These include ridesharing, e-commerce, travel, and smaller, less-proven advertising platforms.
A day later, the firm highlighted the strong performance of a new game called "Escape Tsunami." The game reached the number 4 spot on the platform within a month of launch. Morgan Stanley acknowledged this success as a short-term positive, viewing it as a showcase of the platform's strength.
It sees the game's performance as an indication of robust engagement and bookings growth in 2026. The firm reiterated its Overweight rating and $155 price target in the follow-up note.
Roblox Corporation operates an immersive online gaming and creation platform that enables people to create, connect, and communicate.