Summary

• Roblox (RBLX) shows strong technical indicators with 100% buy signals, a 29.56% gain last year, and a Trend Seeker buy signal since 11/1.

• The company offers a robust platform with tools like Roblox Studio and Roblox Cloud, supporting its substantial market cap of $36.19 billion.

• Analysts are optimistic with multiple buy ratings and price targets up to $72, citing growth in DAUs, demographics, and new ad products.

• Despite volatility, RBLX is recommended for portfolios with disciplined diversification and stop-loss strategies, reflecting its current price appreciation and future potential.

The Chart of the Day belongs to the electronic gaming company Roblox (RBLX) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/1 the stock gained 15.78%.

RBLX Price vs Daily Moving Averages:

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 48.47+ Weighted Alpha
• 29.56% gain in the last year
• Trend Seeker buy signal
• 1.50 - 60 month Beta
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 20.62% in the last month
• Relative Strength Index 62.21%
• Technical support level at $58.42
• Recently traded at $59.56 with 50 day moving average of $51.33

Fundamental Factors:

• Market Cap $36.19 billion
• Revenue expected to grow 23.75 this year and another 19.32% next year
• Earnings are estimated to increase by 16.90% this year and an additional 2.37% next year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analyst gave 15 strong buys,,8 buys, 8 holds and 2 sell opinions on the stock
• Value Line rate the stock the lowest rating of 5 but has a price target of $72 for a 20% gain and comments:"The company stands to benefit from advertisement through the launch of its video ads product. Furthermore, the company is currently testing real-world shipping in Roblox with partners at Walmart and e.l.f. Beauty."
• CFRA's MarketScope rates the stock a buy with a price target of $60 and comments:" Our Buy rating reflects our outlook for growing DAUs, favorable demographics, increasing global incomes, and the rising adoption of 3D experiences."
• MorningStar thinks the stock is fairly valued
• 62,130 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.