What to do with Roblox stock after a 25% rally today?

Roblox Corp (NYSE: RBLX) opened about 25% up on Wednesday after beating estimates for bookings in the holiday quarter.

Could Roblox stock climb any further?

The video game developer reported $899 million worth of bookings versus $871 million that analysts had expected for its recent quarter. Reacting to the earnings print, Ava Labs’ President John Wu said:

Earlier this week, a Bank of America analyst recommended buying Roblox stock. His $54 price target suggests another 20% upside from here.

Roblox Corp now has 58.8 million DAUs

Other notable figures in the earnings report include a 19% annualised growth in average daily active users (DAUs) to 58.8 million and an 18% increase in hours engaged. On Yahoo Finance, Wu added:

Average bookings per daily active user (ABPDAU), however, were down 2% versus last year.

Key takeaways from Roblox Q4 earnings report

• Lost $290 million versus the year-ago $144 million
• Per-share loss also climbed from 25 cents to 48 cents
• Revenue went up nearly 2.0% YoY to $579 million
• Consensus was 51 cents loss on $648 million revenue

Roblox now estimates $213 million to $216 million in revenue for January on up to $271 million of bookings. In the earnings press release, CFO Michael Guthrie said:

For the year, Roblox stock is now up more than 50%.