Roblox (RBLX) stock was up on Tuesday after a prominent YouTuber was banned from the company’s game after confronting alleged child predators. YouTuber Schlep was banned from Roblox and sent a cease-and-desist letter for violating Terms of Use and Community Standards. However, Schlep claims he has done nothing wrong.
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The 22-year-old YouTuber, with more than 600,000 subscribers, has allegedly helped in six arrests with his work in Roblox. He also noted the company has banned all of the Roblox accounts he has made since he was eight years old, many of which were used to contact potential predators.
Schlep has a personal interest in confronting predators on Roblox. The YouTuber claimed he was groomed on the platform as a child by a popular developer on the platform. He also alleged that Roblox was contacted about the grooming by his mother, but that it failed to remove the developer for several years and only provided her with crisis resources.
Not Roblox’s First Predator Problem
Roblox was also recently hit with a lawsuit from parents who argue the platform didn’t do enough to protect their 10-year-old daughter from being abducted by a predator. Discord was also named in this lawsuit, as the conversations that started in Roblox moved to the messaging service. A news release for the lawsuit noted this was the seventh such one filed against Roblox.
RBLX stock was up 0.06% on Tuesday, building on a 126.03% rally year-to-date. The shares have also increased 237.39% over the past 12 months.
Is Roblox Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Roblox is Moderate Buy, based on 16 Buy, four Hold, and a single Sell rating over the past three months. With that comes an average RBLX stock price target of $142.10, representing a potential 8.61% upside for the shares.
