© Reuters Scanning the potential benefits of Roblox (RBLX) AI tools says Morgan Stanley
Morgan Stanley revealed that it hosted a no-deal (NDR) roadshow with Roblox Corp (NYSE: CTO Dan Sturman and CFO Mike Guthrie), focusing on the company’s AI initiatives/investments on Wednesday.
The investment bank’s analysts, who have a lower weight rating and a $26-share target, said they made clear that while the company maintains a cautious view on RBLX this year, they see “clear potential long-term benefits where AI tools can empower creators.” To create more/stronger content and ultimately increase engagement and monetization for RBLX.”
“On a high level, we believe RBLX can benefit from putting AI-based tools in the hands of its creators, as the company will eventually see an upside from any improvements to engagement and monetization,” the analysts wrote.
Elsewhere, Oppenheimer also issued a note after the event, with analysts, who have a Performance rating on the stock, saying, “The basic takeaway is the democratization of creation.”
To build an experience on Roblox, developers need to be skilled in coding or art. However, the management goal is to remove the skill required for users to create, thus expanding the creator community. RBLX understands that a better, higher quality experience attracts more engagement, which leads to better monetization,” the analysts explained.
