Roblox Corporation (NYSE:RBLX) shares are trading higher Monday after Wedbush reiterated its Outperform rating and a $165 price target, describing the stock as one of the strongest growth opportunities in the gaming sector despite ongoing controversies and legal challenges tied to child safety on the platform.
The firm acknowledged that negative press and lawsuits could bring volatility but emphasized management's swift responses to safety concerns, including new tools for parental oversight, age estimation, and AI-driven content monitoring. Roblox has recently open-sourced its AI tool, Roblox Sentinel, to help developers combat child predation, and introduced new privacy features in July and August. Wedbush said these measures support the company's long-term trust and safety efforts, which it considers critical to the platform's success.
