Roblox cleared a buy point Wednesday after the the gaming platform received a bullish Wall Street call.
Wells Fargo initiated Roblox stock as overweight with a 49 price target. It cited advertising upside from its "growing audience platform" as the reason for the rating.
Roblox operates an online video game platform. It allows users to create, develop, and monetize games for other players.
Roblox Stock Technical Analysis
Roblox stock ended the session up 3%. That signals a breakout above a 42.20 handle buy point within a double-bottom base.
RBLX stock has been making up good ground on its Nov. 25 low of 24.88, and is now up about 73% on this level.
The relative strength line is spiking and it boasts an RS Rating of 91 out of 99.
Overall performance is not ideal though, with its IBD Composite Rating coming in at 65 out of 99. Earnings performance is currently the Achilles heel.
Roblox loses money, and that isn't expected to change anytime soon.
Roblox stock holds sixth spot in the Computer-Software-Gaming industry group. Other members include NetEase, Electronic Arts and Nintendo
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