Needham & Company LLC Has Lowered Expectations for Roblox (NYSE:RBLX) Stock Price

Key Points

• Needham & Company LLC cut its price target on Roblox from $105 to $60 but kept a "buy" rating, implying roughly an 8.2% upside from the current share price.
• Q1 results showed a narrower-than-expected loss (EPS ‑$0.35 vs. ‑$0.41) and revenue up 43% YoY to $1.44B, but revenue missed estimates and management sharply cut bookings/revenue guidance, citing new safety measures and age verification that slowed user growth.
• Insiders sold about 551,996 shares (~$38.4M) in the last 90 days; the stock trades near $55.43 with a negative P/E and ~$37B market cap, while analysts' average price target is $106.44 (consensus: "Moderate Buy").

Roblox (NYSE:RBLX - Get Free Report) had its price objective cut by equities researchers at Needham & Company LLC from $105.00 to $60.00 in a report released on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price objective suggests a potential upside of 8.24% from the company's current price.

A number of other research firms have also recently commented on RBLX. Roth Mkm upgraded Roblox from a "neutral" rating to a "buy" rating and increased their price target for the company from $78.00 to $84.00 in a research note on Monday, February 9th. Wall Street Zen upgraded Roblox from a "sell" rating to a "hold" rating in a research note on Saturday, March 28th. Morgan Stanley reissued an "overweight" rating on shares of Roblox in a report on Friday. TD Cowen raised shares of Roblox from a "sell" rating to a "hold" rating in a report on Friday. Finally, BMO Capital Markets reissued an "outperform" rating on shares of Roblox in a report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Roblox currently has an average rating of "Moderate Buy" and an average price target of $106.44.

Roblox Trading Down 1.5%

Roblox stock opened at $55.43 on Friday. The stock has a 50-day moving average of $59.46 and a two-hundred day moving average of $80.23. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96. Roblox has a one year low of $51.23 and a one year high of $150.59. The stock has a market cap of $37.07 billion, a PE ratio of -35.76 and a beta of 1.67.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating analysts' consensus estimates of ($0.41) by $0.06. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The company had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.74 billion. During the same period last year, the business posted ($0.32) earnings per share. The firm's revenue was up 43.4% compared to the same quarter last year. On average, research analysts anticipate that Roblox will post -1.6 EPS for the current fiscal year.

Insider Activity

In related news, insider Arvind Chakravarthy sold 40,646 shares of the firm's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $67.23, for a total transaction of $2,732,630.58. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO David Baszucki sold 10,834 shares of the firm's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $61.63, for a total value of $667,699.42. Following the sale, the chief executive officer directly owned 800,539 shares in the company, valued at approximately $49,337,218.57. This trade represents a 1.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 551,996 shares of company stock valued at $38,421,146 over the last 90 days. Company insiders own 12.92% of the company's stock.

Institutional Trading of Roblox

Institutional investors have recently bought and sold shares of the business. Pilgrim Partners Asia Pte Ltd acquired a new stake in Roblox in the third quarter valued at approximately $26,000. Whittier Trust Co. of Nevada Inc. acquired a new stake in Roblox in the third quarter valued at approximately $37,000. Root Financial Partners LLC acquired a new stake in Roblox in the third quarter valued at approximately $38,000. Sunbelt Securities Inc. grew its holdings in Roblox by 58.7% in the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock valued at $39,000 after purchasing an additional 105 shares during the period. Finally, Salomon & Ludwin LLC acquired a new stake in Roblox in the third quarter valued at approximately $41,000. 94.46% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Q1 results showed improvement vs. last year: Roblox posted a smaller-than-expected loss and revenue was up substantially year-over-year, underscoring continued platform scale. Roblox (RBLX) Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: Regulatory/compliance activity: Roblox said it is implementing control measures to comply with Indonesia’s social media rules for users under 16 — this is operationally relevant but not an immediate earnings surprise. Roblox announces control measures to comply with Indonesia's social media curb
• Neutral Sentiment: Full earnings call transcript and slides are available for deeper read-through of management’s explanation of user trends, safety investments and margin outlook. Review the call for color on timing of user‑recovery assumptions. Roblox Corporation (RBLX) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Guidance cut: management sharply trimmed annual bookings/revenue expectations and lowered Q2 revenue guidance, citing the impact of new safety features and age verification that have reduced user communication and slowed new-user growth — the primary driver of the selloff. Roblox slashes annual bookings forecast as new safety features take their toll
• Negative Sentiment: Market reaction and analyst concerns: media and markets coverage notes the reduced outlook is below Street expectations and flagged slower user monetization, which prompted a sharp intraday/after‑hours decline in the stock. Roblox Cuts Outlook as Safety Efforts Weigh on First-Quarter Results
• Negative Sentiment: Reputational/legal risk: a media report about an alleged safety failure and a lawsuit was published, which could add regulatory, litigation or PR pressure for the company. Roblox allowed predator to pay Uber driver $1K to abduct teen girl who was sexually assaulted, locked in a room: lawsuit

About Roblox

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company's building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox's business model is built around its virtual economy and creator ecosystem.

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