Roblox (RBLX) Stock Rebounds as EU Ruling Clears Compliance Path
TLDR
- Roblox has been formally labeled a “very large online platform” under the EU’s Digital Services Act, giving it clearer compliance rules for its 45 million European monthly users.
- The stock got a lift from a technical bounce and heavy short covering following a sharp drop in bearish bets during August.
- Roblox’s $3 billion share buyback plan is adding further support to the stock.
- Q2 earnings came in at a loss of $0.26 per share, beating estimates, but revenue of $1.47 billion missed the $1.60 billion consensus.
- Analyst consensus is “Hold” with an average price target of $60.89; Morgan Stanley recently cut its target from $62 to $55.
Roblox (RBLX) opened at $41.32 on Tuesday, bouncing from recent lows after the EU formally classified the platform as a “very large online platform” under the Digital Services Act. The ruling gives Roblox a clear compliance timeline for its 45 million monthly users in Europe, which investors appear to have welcomed.
The stock has had a rough year. It is down over 52% year-to-date, with a 12-month high of $142.00 and a recent low of $33.88. The current market cap sits at around $27.52 billion.
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