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Roblox (RBLX), e.l.f. Beauty Team Up to Test Real-World Commerce
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Roblox (RBLX - Free Report) announced an expansion of its collaboration with e.l.f. Beauty (ELF - Free Report) , making the latter the first beauty brand to test real-world commerce on the platform. This initiative aims to engage ELF's growing community in Roblox, which has accumulated more than 12 million visits and aligns with the brand's mission to bring beauty to every eye, lip and face.
The e.l.f. UP! experience on Roblox, launched in November 2023, offers users a personalized journey to become successful entrepreneurs and cultural changemakers, focusing on startups representing their passions. The experience has garnered a 96% positivity rating and has distributed more than one million free virtual items to users, becoming one of the largest providers of free limited-edition virtual items on RBLX.
The e.l.f. UP! experience is developed in partnership with eGen and Supersocial, further solidifying ELF's innovative presence in the immersive commerce space on Roblox.
This Zacks Rank #2 (Buy) company recently partnered with Adidas to create a user-generated content collaboration with Jonathan Courtney, known as @WhoseTrade, featuring digital and physical products. Adidas aims to combine creativity and authenticity, targeting the virtual identities of younger consumers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RBLX’s Recent AI Efforts to Boost Daily Active User Growth
Roblox’s recent collaborations are a result of its constant innovation in AI. The company has significantly advanced its AI capabilities by providing creators with a suite of generative AI tools designed for creating immersive 3D experiences. These tools, available through the free Roblox Studio app, include Assistant for 3D workspace editing, Animation Capture for face and body motion and many more.
Recent AI advancements include the full rollout of Code Assist, which has saved users significant development time and automatic chat translations, and enhanced global communication on the platform. These efforts aim to make it possible for anyone to bring their ideas to life with simple commands, pushing the boundaries of content creation on Roblox.
Looking ahead, Roblox is working toward developing 4D generative AI, which incorporates interaction as the fourth dimension. This involves creating assets that not only have shape and color but also incorporate complex interactions, such as avatars with animations and physics-enabled objects.
These innovations are expected to boost the company’s daily active users (DAUs) and total hours engaged in the upcoming quarters.
The Zacks Consensus Estimate for RBLX’s 2024 DAUs is pegged at 79,479, indicating year-over-year growth of 16.2%. The consensus mark for total hours engaged is pegged at 69,039, indicating year-over-year growth of 15.1%.
However, RBLX faces tough competition from big players like Meta Platforms (META - Free Report) and Qualcomm (QCOM - Free Report) .
Shares of RBLX have plunged 18.9% year to date compared with the Zacks Consumer Discretionary sector’s decline of 1.7%. The stock has also underperformed META, which has gained 42.6%, followed by QCOM’s rise of 38.3% in the same time frame.
Conclusion
Roblox’s expanding partnerships and AI efforts act as a catalyst for the company. However, strong competition remains a major concern.
RBLX’s strong liquidity is a major positive. As of Mar 31, 2024, the company’s net liquidity (cash, cash equivalents and investments less debt) was $2.46 billion.
The Zacks Consensus Estimate for Roblox’s second-quarter 2024 loss per share is pegged at 41 cents, which has narrowed by 11 cents in the past 60 days. The consensus mark for 2024 loss per share is pegged at $1.67 per share, which has narrowed by 43 cents in the past 60 days.
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Roblox (RBLX), e.l.f. Beauty Team Up to Test Real-World Commerce
Roblox (RBLX - Free Report) announced an expansion of its collaboration with e.l.f. Beauty (ELF - Free Report) , making the latter the first beauty brand to test real-world commerce on the platform. This initiative aims to engage ELF's growing community in Roblox, which has accumulated more than 12 million visits and aligns with the brand's mission to bring beauty to every eye, lip and face.
The e.l.f. UP! experience on Roblox, launched in November 2023, offers users a personalized journey to become successful entrepreneurs and cultural changemakers, focusing on startups representing their passions. The experience has garnered a 96% positivity rating and has distributed more than one million free virtual items to users, becoming one of the largest providers of free limited-edition virtual items on RBLX.
The e.l.f. UP! experience is developed in partnership with eGen and Supersocial, further solidifying ELF's innovative presence in the immersive commerce space on Roblox.
This Zacks Rank #2 (Buy) company recently partnered with Adidas to create a user-generated content collaboration with Jonathan Courtney, known as @WhoseTrade, featuring digital and physical products. Adidas aims to combine creativity and authenticity, targeting the virtual identities of younger consumers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RBLX’s Recent AI Efforts to Boost Daily Active User Growth
Roblox’s recent collaborations are a result of its constant innovation in AI. The company has significantly advanced its AI capabilities by providing creators with a suite of generative AI tools designed for creating immersive 3D experiences. These tools, available through the free Roblox Studio app, include Assistant for 3D workspace editing, Animation Capture for face and body motion and many more.
Recent AI advancements include the full rollout of Code Assist, which has saved users significant development time and automatic chat translations, and enhanced global communication on the platform. These efforts aim to make it possible for anyone to bring their ideas to life with simple commands, pushing the boundaries of content creation on Roblox.
Looking ahead, Roblox is working toward developing 4D generative AI, which incorporates interaction as the fourth dimension. This involves creating assets that not only have shape and color but also incorporate complex interactions, such as avatars with animations and physics-enabled objects.
These innovations are expected to boost the company’s daily active users (DAUs) and total hours engaged in the upcoming quarters.
The Zacks Consensus Estimate for RBLX’s 2024 DAUs is pegged at 79,479, indicating year-over-year growth of 16.2%. The consensus mark for total hours engaged is pegged at 69,039, indicating year-over-year growth of 15.1%.
However, RBLX faces tough competition from big players like Meta Platforms (META - Free Report) and Qualcomm (QCOM - Free Report) .
Shares of RBLX have plunged 18.9% year to date compared with the Zacks Consumer Discretionary sector’s decline of 1.7%. The stock has also underperformed META, which has gained 42.6%, followed by QCOM’s rise of 38.3% in the same time frame.
Conclusion
Roblox’s expanding partnerships and AI efforts act as a catalyst for the company. However, strong competition remains a major concern.
RBLX’s strong liquidity is a major positive. As of Mar 31, 2024, the company’s net liquidity (cash, cash equivalents and investments less debt) was $2.46 billion.
The Zacks Consensus Estimate for Roblox’s second-quarter 2024 loss per share is pegged at 41 cents, which has narrowed by 11 cents in the past 60 days. The consensus mark for 2024 loss per share is pegged at $1.67 per share, which has narrowed by 43 cents in the past 60 days.