BREAKING: Tesla Deliveries Lowest In Years Youth-centric gaming and social platform Roblox (RBLX) has earned positive notices from Wall Street analysts for its new advertising initiative. Roblox stock rose on Wednesday. On Tuesday, Roblox launched a new form of advertising called Rewarded Video Ads. The feature allows users to watch ads in exchange for an in-game benefit. Roblox has partnered with Alphabet (GOOGL) unit Google to scale the new ad format and offer it to brands and agencies. Plus, Roblox announced partnerships with Cint, DoubleVerify (DV), Integral Ad Science (IAS), Kantar and Nielsen to help ad buyers effectively measure the impact of their ads. With Rewarded Video Ads, users can opt in and watch up to 30-second full-screen video ads within Roblox games and experiences. In return, users get in-game benefits from the game creators, such as power-ups and in-game currency. "This new format is a win-win-win for brands, creators, and users, and we've been excited by the early results of our tests which have proven this out," Stephanie Latham, vice president of global brand partnerships and advertising at Roblox, said in a press release. She added, "Our partnership with Google makes it very easy to buy these engaging ads and reach key audiences at scale. We are continuing to remove barriers for brands and agencies that are quickly realizing the massive potential of immersive gaming platforms like Roblox where Gen Z are increasingly spending their time." In afternoon trades on the stock market today, Roblox stock advanced more than 2% to 62.46. Roblox offers a 3D virtual space in which people can socialize and play games. Roblox online experiences range from gaming and hangouts to concerts, sports, fashion shows, education and entertainment. Morgan Stanley analyst Matthew Cost reiterated his overweight, or buy, rating on Roblox stock with a price target of 75. "We are fundamentally bullish on the ad opportunity at Roblox, as we see the potential to significantly increase monetization of its 85 million DAUs (daily active users)," he said. Cost estimated the potential revenue opportunity for Roblox at $1.2 billion in 2026. Rewarded Video is in addition to the billboard and portal ad units that Roblox launched last year, he said. "Looking further ahead, the company noted that it continues to work on new initiatives including homepage takeover ads, deeper e-commerce integrations, and more engaging sponsored experience ads," Cost said. Deutsche Bank analyst Benjamin Black maintained his buy rating on Roblox stock with a price target of 78. "We view this launch as a meaningful new monetization lever for Roblox, which by our calculations could drive $150 million to $300 million in additional advertising revenue in 2026," he said. Roblox will share the ad revenue with Google and the game creators. Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE: Nintendo Introduces Nvidia-Powered Switch 2 Game Device Intel's New CEO Outlines Recovery Strategy. Wall Street Remains Cautious. How To Know It's Time To Sell Your Favorite Stock When To Sell Growth Stocks: This Could Be Your No. 1 Rule Join IBD Live For Stock Ideas Each Morning Before The Open 5:47 AM ET Amazon and Tesla rallied Wednesday, while Nvidia reversed higher. 5:47 AM ET Amazon and Tesla rallied Wednesday, while Nvidia reversed higher. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Get market updates, educational videos, webinars, and stock analysis. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use. *Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by LSEG and Estimate data provided by FactSet. IBD, IBD Digital, IBD Live, IBD Weekly, Investor's Business Daily, Leaderboard, MarketDiem, MarketSurge and other marks are trademarks owned by Investor's Business Daily, LLC. ©2025 Investor’s Business Daily, LLC. All Rights Reserved.