Roblox (NYSE:RBLX) Lowered to "Neutral" Rating by Bank of America

Key Points

• Bank of America downgraded Roblox from "Buy" to "Neutral" and set a $48 price target, implying roughly a 13.4% downside from current levels.
• Roblox's Q1 beat EPS expectations (‑$0.35 vs. ‑$0.41) but missed revenue ($1.44B vs. $1.74B) and the company sharply cut annual bookings and Q2 revenue guidance, citing new safety and age‑verification measures that have slowed user growth.
• Analyst views remain mixed: the consensus is a "Moderate Buy" with an average target of $108.24, while individual price targets vary widely (about $48 to $122), reflecting divergent expectations.

Roblox (NYSE:RBLX - Get Free Report) was downgraded by investment analysts at Bank of America from a "buy" rating to a "neutral" rating in a report issued on Friday. They presently have a $48.00 price objective on the stock. Bank of America's price target would suggest a potential downside of 13.40% from the stock's current price.

Several other brokerages also recently commented on RBLX. Wolfe Research set a $100.00 price objective on shares of Roblox in a research report on Monday, January 5th. Raymond James Financial lowered Roblox from an "outperform" rating to a "market perform" rating in a research note on Friday. Roth Mkm raised Roblox from a "neutral" rating to a "buy" rating and raised their price target for the company from $78.00 to $84.00 in a report on Monday, February 9th. Jefferies Financial Group set a $85.00 price objective on Roblox in a research report on Thursday, January 15th. Finally, BTIG Research reaffirmed a "buy" rating and issued a $122.00 price objective on shares of Roblox in a research note on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $108.24.

Roblox Stock Down 1.5%

RBLX stock opened at $55.43 on Friday. The business's 50-day moving average price is $59.46 and its 200-day moving average price is $80.23. The stock has a market cap of $37.07 billion, a P/E ratio of -35.76 and a beta of 1.67. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.65. Roblox has a twelve month low of $51.23 and a twelve month high of $150.59.

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

Insider Buying and Selling

In other Roblox news, CEO David Baszucki sold 10,834 shares of the business's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $61.63, for a total value of $667,699.42. Following the sale, the chief executive officer owned 800,539 shares in the company, valued at $49,337,218.57. The trade was a 1.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Arvind Chakravarthy sold 40,646 shares of the stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total transaction of $2,732,630.58. The SEC filing for this sale provides additional information. Insiders sold a total of 551,996 shares of company stock worth $38,421,146 in the last 90 days. 12.92% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roblox

Several institutional investors have recently added to or reduced their stakes in the company. Pilgrim Partners Asia Pte Ltd bought a new stake in Roblox in the 3rd quarter worth approximately $26,000. Whittier Trust Co. of Nevada Inc. purchased a new stake in Roblox during the third quarter valued at $37,000. Root Financial Partners LLC purchased a new stake in Roblox during the third quarter valued at $38,000. Sunbelt Securities Inc. lifted its position in Roblox by 58.7% during 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 last quarter. Finally, Salomon & Ludwin LLC bought a new position in Roblox during the third quarter valued at $41,000. Hedge funds and other institutional investors own 94.46% of the company's stock.

Roblox News Roundup

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

Roblox Company Profile

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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