Roblox (RBLX) stock slipped on Friday after the video game company was named in a lawsuit from Tennessee Attorney General Jonathan Skrmetti. According to the lawsuit filed against Roblox, the company profits by “luring children into an environment it knows is dangerous but promises is safe.”
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Skrmetti’s lawsuit adds Tennessee to a growing list of states that have filed against Roblox over its alleged lack of child safety. So far, the Attorneys General of Florida, Kentucky, Louisiana, and Texas have also filed lawsuits against Roblox due to its alleged failure to protect children on its platform. The video game company has also been criticized for blocking users who target predators on Roblox, such as YouTuber Schlep.
While Roblox has announced changes to its child protections, it doesn’t appear that these have been enough for the Attorneys General. Additionally, the company has been working on a way to get Russia to remove its ban on the game. However, there’s no guarantee its plan will work.
Roblox Stock Movement Today
Roblox stock was down 1.54% on Friday but was still up 42.57% year-to-date. The company’s stock has also rallied 39.59% over the past 12 months. These gains are tied to its strong user growth, despite the child endangerment lawsuits the company has faced.
Is Roblox Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Roblox is Moderate Buy, based on 13 Buy, nine Hold, and a single Sell rating over the past three months. With that comes an average RBLX stock price target of $139.05, representing a potential 67.83% upside for the shares.
