Why Roblox Shares Are Rising

Roblox Corp RBLX shares are trading higher by 5% at $99.82 after Needham initiated coverage on the stock with a Buy rating and a $136 price target.

Roblox shares were otherwise trading lower Wednesday after the company issued average bookings per daily active user guidance, which is expected to be down 8-9% year over year.

Roblox operates an online video game platform that lets young gamers create, develop and monetize games for other players. The firm effectively offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing and social network.

Roblox has a 52-week high of $141.60 and a 52-week low of $60.50.