Roblox (RBLX) stock plunged 8.1% on Friday, as M Science analyst Corey Barrett raised concerns about the slowdown in the gaming platform’s bookings growth. RBLX stock has rallied more than 112% year-to-date. Wall Street is cautiously optimistic on the stock due to valuation concerns, especially given that the company continues to post losses.
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It is worth noting that ace hedge fund manager Cathie Wood has been trimming her stake in Roblox in recent trading sessions.
Analyst Raises Concerns About RBLX’s Decelerating Bookings Growth
Barrett highlighted that while Roblox’s platform Daily Active User (DAU) growth was strong globally in September, bookings growth has “decelerated sharply from recent highs” in the U.S. and to a lesser extent in core European markets. He noted that U.S. bookings growth likely slowed to the low 30% range on a year-over-year basis in September from mid-to-high 40% in August and mid-to-high 50% in July.
The analyst cited a rationalization of growth in more mature markets due to the back-to-school season as the reason for lower growth rates in the U.S. and Europe. That said, Barrett highlighted that bookings growth in non-core markets remains at or near recent highs. Furthermore, the analyst pointed out acceleration in mobile DAU growth across all regions from Q2 2025 to Q3, although growth in September was only in the low single digits in the U.S. and Asia-Pacific regions. He added that growth continues to touch new records in Europe and the Rest of the World markets.
While overall bookings growth remains “objectively strong,” Barrett noted that the deceleration in RBLX’s core markets appears to be more significant than many investors anticipated based on global engagement metrics.
Is RBLX a Good Stock to Buy?
Currently, Wall Street has a Moderate Buy consensus rating on Roblox stock based on 17 Buys, five Holds, and one Sell recommendation. The average RBLX stock price target of $150 indicates 22.3% upside potential from current levels.
