Roblox is up 5.16% today because analysts just figured out what every parent already knows - their kids are completely obsessed with this platform. After months of skepticism about a "kids' game company" being worth $81 billion, the financial world is finally catching up to reality.
Analysts Scramble to Raise Price Targets
Wedbush just confirmed their $165 price target, which honestly seems conservative given the numbers coming out of this company. Bank of America also jumped on board with raised projections, probably after someone's intern explained what "Grow a Garden" actually is.
The numbers are actually nuts: Q2 bookings hit $1.44 billion (revenue was $1.08 billion), up 32% year-over-year. They're still losing $0.41 per share, but that's not what matters here. Tesla lost money for years too. When you have 111 million kids logging in daily and spending their parents' money, profitability becomes inevitable.
47 Million Kids Playing at Once Breaks the Internet
The real story behind today's surge is Roblox hitting 47 million concurrent users on August 23rd. That's more than Steam's all-time record. To put it in perspective, when Fortnite hit 12 million concurrent users, the internet lost its mind. This is almost four times bigger.
What makes this even more insane for investors is that Roblox didn't create the games driving this traffic - random developers did, and Roblox just takes a cut. The platform model is working exactly as designed: provide the infrastructure, let creators build whatever kids want, collect 30% of everything.
The Money Machine Is Just Getting Started
Here's what investors are finally understanding: Roblox isn't just a gaming company, it's a digital economy. Kids spend real money to buy virtual currency to spend on virtual items in virtual worlds. And the conversion rates are fucking incredible.
Wolfe Research thinks regional pricing alone adds $318 million in 2026 bookings, while advertising could bring another $300 million annually. But those numbers seem conservative when you realize Roblox has 111 million daily active users who are increasingly willing to spend money.
The real kicker? Most of these users are Gen Z and Gen Alpha - the demographics that every other company is desperately trying to reach. Roblox already has them, engaged for hours every day, spending their allowances. Good luck to Meta, Google, and TikTok trying to replicate that.