One of the big stock success stories in recent times is the surge in ity of Roblox (RBLX 1. 24%) stock, which reached the vaunted level of $100 per for the first time in its history as a stock.
This was helped by a nearly 21% surge across the month of June, thanks largely to the surge in ity of one of its titles, plus a clutch of positive new analyst takes on the online game company.
Growing gardens and ity Roblox, whose stock was on a tear even before it reported market-pleasing first-quarter results at the start of May, was indisputably a pundit favorite the ing month.
More than a few gnosticators tracking the stock issued positive on its spects, with several raising their price targets. Image source: Getty Images.
Among the more assertive raisers was Piper Sandler analyst Thomas Champion, who early in the month lifted his price target to $105 per, well up from his preceding $85.
In doing so, he maintained his overweight (read: buy) recommendation on the stock.
According to sources, Champion based his adjustment on what he feels is the company's imvements in introducing and moting content on its sprawling portal.
As an example of this effectiveness, he cited a monster recent hit for the platform, called Grow a Garden, which is currently a massively title for the company.
Given this success, the analyst believes Roblox shouldn't have much of a blem dering more hit games that resonate with its audience, still comprised largely of children.
Speaking of Grow a Garden, its explosive growth was no small reason for Roblox stock's June surge.
Another June analysis, from Barclays, pointed out that the game has passed 12 billion lifetime visits since its launch in late March -- a rapid and intense take-up figure by any standard.
During June, the bank wrote, Grow a Garden also surpassed Fortnite as the game played by the highest number of users concurrently.
Buoyed by double-digit fundamental growth Roblox remains an exciting stock even after its big move northward in price.
In many ways, it's a unique company, fusing elements of games, social media, and a thriving in-platform economy.
It's a go-to site for very young users, thanks to its appealing and generally kid-friendly titles, as well as the ability to chat with fellow users in the games.
The company's finances could be better; however, it is growing where it counts.
In its most recently reported quarter, the ever-important average daily active user (DAU) number leaped 26% higher year over year to almost 98 million (.
), while revenue growth topped that percentage, with a 29% rise to more than $1 billion. Eric Volkman has no position in any of the stocks mentioned.
The Motley Fool has positions in and recommends Roblox. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.