- RBLX
-9.86% - JEF
-1.15%
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Roblox (NYSE:RBLX), the online gaming platform, fell 5.56% intraday, as of 12:30 p.m. ET, after Jefferies downgraded the stock from Hold to Underperform with a $38 price target. The firm argued the roughly 30% rally since second-quarter results reflects an overly optimistic view of bookings over the next 12 months.
Jefferies said the recovery in U.S. and Canada users and bookings will take longer and cost more than the market expects. U.S. and Canada daily active users rose from about 20 million in early 2025 to a peak of 26 million in the third quarter of 2025. Jefferies pointed to Roblox’s new algorithm, which rewards games with strong long-term retention, as likely to limit user growth over the next few quarters. The firm said earlier viral hits such as Grow a Garden and Steal a Brainrot drove <a href="https://comicvibe.com/how-much-would-it-cost-to-build-a-pc-equivalent-to-the-playstation-5-pro-in-2026/” title=”How Much Would It Cost To Build A PC Equivalent To The PlayStation 5 Pro In 2026?”>much of the past growth but lost players quickly, and that newer ones like Steal an Egg are unlikely to bring in new audiences.
Oppenheimer recently reiterated an Outperform rating and a $50 target, expecting new AI tools at the upcoming RDC 2026 conference.
