Roblox Stock Slides as Analysts Cut Future Hopes

Roblox ( (RBLX) ) has fallen by -8.82%. Read on to learn why.

Roblox shares fell 8.82% over the past week as investors reacted to a wave of cautious analyst updates and signs that the company’s breakneck growth may be slowing. Several firms, including Wells Fargo and TD Cowen, cut their price targets, citing weaker-than-expected December bookings, tougher comparisons for the 2025 content cycle, and reduced estimates for 2026 and beyond. TD Cowen, which maintained a Sell rating, trimmed its near-term and long-term bookings forecasts after flagging a softer exit rate into 2026, while Wells Fargo acknowledged it had underestimated how challenging next year’s content comparisons will be.

The downgrade cycle added fuel to existing worries around Roblox’s fundamentals. Analysts pointed to cooling user engagement as some of the platform’s earlier viral hits lose momentum, ongoing margin pressure, continued GAAP losses, and concerns over potential regional user bans. These issues, combined with insider stock sales and a technical “Sell” signal, weighed on sentiment and helped drive the stock lower despite the company still being viewed by many as a secular growth story in online gaming and immersive experiences.

Not all on Wall Street are turning their backs on Roblox, however. Citi and Wolfe Research kept Buy ratings in place, highlighting robust daily active user trends, Roblox’s heavy investment in AI and infrastructure, and a supportive macro and capital-allocation backdrop as reasons to stay constructive over the long term. The company also announced a major safety move, becoming the first large online gaming platform to require age verification for all users to access chat globally, a step that could strengthen its regulatory profile and brand with parents. For now, though, the combination of reduced growth expectations and rising execution risks has dominated trading, pushing Roblox’s stock down for the week.