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Investing.com – Roblox (NYSE:RBLX) shares rose 7% in Tuesday’s session after analysts at Stifel put a ‘buy’ rating on them with an $85 target.
The stock has a lower consensus target of $72.50.
Roblox made its public debut March 10 with a reference price of $45. The online gaming company commands a market cap of almost $40 billion.
Fund manager Cathie Wood’s ARK Next Generation Internet ETF (NYSE:ARKW) last week bought over 500,000 shares of the video-games developer, according to reports.
Roblox has more than 32 million daily average users on its online platform that allows them to program games and play those created by other users. Roblox is free to play, but there are in-game purchases available.
According to Business Insider, Stifel said the company will benefit not just from network effect but also from the strong growth in the video game industry.
