Roblox (RBLX +2.68%) stock is down 36% in 2026 as of Oct. 20, even though revenue and free cash flow continue to grow. The sell-off stems from a slowdown in engagement and bookings, but the company is making changes that could set up stronger growth over the next few years.
RBLX Roblox$53.96+$1.41 (+2.68%)
NYSE · As of 4:00 PM ET 10/22/26
In the second quarter of 2026, revenue rose 36% year over year to about $1.5 billion. However, bookings -- a more accurate measure of what players spend on the platform -- grew just 8% to roughly $1.6 billion, at the low end of management's guidance. The slower growth in bookings reflects weaker engagement: daily active users increased by 10% to 123 million, while hours spent on the platform rose by only 5%.
Part of the slowdown was intentional. Roblox added safety measures, including age checks before players can access in-game chat, which reduced engagement during the quarter. It also adjusted its discovery algorithms to favor games that keep players longer, which temporarily steered users away from titles that drive higher near-term bookings. These steps are meant to build a stronger foundation for long-term growth.
Image source: Getty Images.
Catalysts are already emerging that could improve engagement. A new artificial intelligence-powered creation tool called Build is designed to help developers create higher-quality experiences, which should support greater engagement and bookings over time.
Importantly, the business continues to generate strong cash flow. Free cash flow jumped 66% year over year to $294 million in Q2 2026. That lifted trailing-12-month free cash flow to $1.6 billion.
Third-quarter results on Oct. 29 will be the next key checkpoint. Management expects bookings to decline from a year ago. Investors should watch growth in daily active users and management's outlook for engagement and bookings heading into 2027, which will likely have a greater impact on the stock.
For patient investors, the pullback has left the stock trading at just 22 times free cash flow -- a more reasonable entry point while Roblox works through these near-term headwinds.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roblox. The Motley Fool has a disclosure policy.
In the latest trading session, Roblox (RBLX - Free Report) closed at $53.75, marking a +2.28% move from the previous day. This change outpaced the S&P 500's 1.21% loss on the day. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw a decrease of 2.6%.
Shares of the online gaming platform witnessed a gain of 7.27% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.48%, and the S&P 500's loss of 0.03%.
The upcoming earnings release of Roblox will be of great interest to investors. The company's earnings report is expected on October 29, 2026. The company is expected to report EPS of -$0.41, down 10.81% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.63 billion, indicating a 15.17% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.55 per share and revenue of $6.9 billion. These totals would mark changes of -0.65% and +1.64%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Roblox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Roblox is currently a Zacks Rank #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 210, finds itself in the bottom 15% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Roblox (RBLX - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis online gaming platform is expected to post quarterly loss of $0.41 per share in its upcoming report, which represents a year-over-year change of -10.8%.
Revenues are expected to be $1.63 billion, down 15.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.11% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Roblox?For Roblox, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +8.54%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Roblox will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Roblox would post a loss of$0.33 per share when it actually produced a loss of -$0.26, delivering a surprise of +21.21%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Roblox appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsChurchill Downs (CHDN - Free Report) , another stock in the Zacks Gaming industry, is expected to report earnings per share of $1.28 for the quarter ended September 2026. This estimate points to a year-over-year change of +17.4%. Revenues for the quarter are expected to be $696.82 million, up 2% from the year-ago quarter.
The consensus EPS estimate for Churchill Downs has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.31%.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Churchill Downs will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The metaverse pioneer is losing investor interest as AI takes over.
*Stock prices used were the afternoon prices of Oct. 18, 2026. The video was published on Oct. 20, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roblox. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Investors often choose between traditional entertainment giants and digital-first platforms. Deciding whether to buy AMC Entertainment (AMC +3.36%) or Roblox (RBLX +3.15%) requires balancing recovery potential against high-growth digital engagement in 2026.
AMC operates the largest movie theater circuit globally, relying on physical attendance and blockbuster film cycles. Roblox provides an immersive 3D platform where users create and interact in virtual worlds. While both stocks capture consumer leisure time, they operate under vastly different financial structures and growth trajectories.
The case for AMC EntertainmentAMC operates approximately 860 theaters and 9,600 screens globally, focusing on premium large-format experiences. In its latest annual report, filed for the year ending 2025, the company highlighted its reliance on major movie studio distributors, which accounted for roughly 83% of its U.S. admissions revenue.
In 2025, revenue reached nearly $4.8 billion, representing growth of roughly 4.6% over the prior year. Despite this growth, the company reported a net loss of approximately $632.4 million.
As of its June 2026 balance sheet, the debt-to-equity ratio was-5.3x, meaning total liabilities exceeded shareholders' equity. The current ratio, which measures a company's ability to pay short-term obligations with short-term assets, is approximately 0.5x.
Trailing-12-month (TTM) free cash flow through Q2 2026 was negative $22 million, a significant improvement from the negative $366 million reported for the full year 2025.
The case for RobloxRoblox operates as a user-generated platform where over 123 million daily active users discover and create 3D experiences. In its 2025 annual report, the company identified its primary distribution channels as Apple and Google. It also maintains a strategic partnership with Tencent and relies on Amazon for cloud infrastructure.
In 2025, revenue reached close to $4.9 billion, a significant 36% increase over the previous fiscal period. However, the company reported a net loss of nearly $1.1 billion. While top-line growth is robust, the company has not yet achieved net income profitability due to high infrastructure and developer costs.
As of its June 2026 balance sheet, the debt-to-equity ratio was approximately 13x, calculated by dividing total debt by shareholder equity.
TTM free cash flow was positive at roughly $1.6 billion, up from nearly $1.4 billion in 2025.
Risk profile comparisonAMC Entertainment faces risks related to its substantial indebtedness and liquidity constraints, which could eventually require additional capital. The company also deals with extreme volatility in its stock price, often driven by retail investor trading dynamics. Competition remains a primary threat, as streaming services like Netflix and other digital platforms vie for consumer attention.
Roblox carries significant exposure to legal and regulatory proceedings, particularly regarding child safety and data privacy on its platform. The company relies heavily on third-party providers such as Apple and Amazon, which set the terms and fee structures for its distribution. Furthermore, the dual-class stock structure concentrates voting control in the hands of its founder, limiting the influence of individual shareholders.
Valuation comparisonAMC Entertainment appears significantly cheaper on a price-to-sales basis, while Roblox trades at a much higher premium due to its rapid growth and positive cash flow generation.
MetricAMC EntertainmentRobloxForward P/E33.1x188.9xP/S ratio0.5x6.2xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
The Forward P/E compares a stock's current price to its future earnings estimates for the next year. Meanwhile, the P/S ratio measures the stock price against sales over the past twelve months.
AMC has reported negative free cash flow every year since 2020, while Roblox continues to grow free cash flow as its platform reaches more users. Roblox is the stock I would buy right now.
AMC has limited growth prospects, with nearly half the U.S. population within 10 miles of one of its theatres. Roblox ended the second quarter of 2026 with 123 million daily active users, up 10% year over year, while management aims to grow the platform to 1 billion users over the long term.
However, Roblox bookings (a non-GAAP measure of revenue) have slowed this year as management implemented age checks on the platform, disrupting monetization. These growing pains have caused the stock to fall well below its highs, presenting investors with a great opportunity to buy shares at an attractive valuation.
Roblox has a history of growing revenue, free cash flow, and daily active users, while AMC has shown limited growth potential and negative free cash flow. Roblox is the better business, trading at a reasonable price-to-free-cash-flow multiple of 22.
On October 20, 2026, Roblox Corp RBLX shares rose 3.1%, bringing the current price to $52.35. Over the past year, the stock has experienced significant volatility, with a 52-week range of $33.88 to $135.85.
GF Value™ verdict: Current price $52.35 vs GF Value $84.71, indicating 38.2% upside. GF Score™ of 66/100, suggesting an above-average overall rating. Notable signal: Insiders sold $105.6M worth of shares over the past 12 months, with no buying activity. Is RBLX Overvalued or Undervalued? Roblox Corp RBLX is currently trading at $52.35, which is significantly below the GF Value™ estimate of $84.71. This suggests that the stock is undervalued by approximately 38.2%. However, the GF Valuation label indicates a "Possible Value Trap," which serves as a cautionary note for potential investors. GF Value™ is a proprietary intrinsic value estimate that takes into consideration historical trading multiples, past business growth, and future performance expectations. While the current price implies a potential upside, the company remains unprofitable and cash-flow negative, making earnings-based valuations like Price-to-Earnings (P/E) less applicable.
The current valuation signals a margin of safety for those looking for investment opportunities in the tech-driven gaming sector. However, the risk remains that the stock may not achieve the projected value due to its ongoing financial challenges.
How Does RBLX's Valuation Compare to Its History? Metric Current Historical P/E (TTM) N/A ~10.2x (historical median P/S) Due to Roblox's ongoing unprofitability, the Price-to-Earnings (P/E) ratio is not applicable, and thus a historical comparison cannot be made in this context. Instead, a Price-to-Sales (P/S) analysis is more relevant, given the company's current cash flow situation. This aligns with the GF Value™ verdict, suggesting potential undervaluation yet warning of risks associated with a loss-making company.
What Does RBLX's GF Score™ Tell Us? The GF Score™ is a composite measure that evaluates a stock's financial strength, profitability, growth potential, valuation, and momentum. RBLX's score of 66/100 indicates that it is positioned above average overall, with strengths in growth and moderate weaknesses in profitability and momentum.
Metric Rating GF Score™ 66/100 Financial Strength 5/10 Profitability 3/10 Growth 9/10 Valuation 4/10 Momentum 2/10 The scores reveal that while Roblox showcases strong growth potential, it struggles with profitability and momentum, which are critical for long-term investment viability. This mixed performance in various sub-ranks highlights the company's challenges as it seeks to navigate through its current operating environment.
What Are Gurus and Insiders Doing with RBLX? Currently, eight gurus hold positions in Roblox Corp, with four increasing their holdings while five have trimmed their positions in recent quarters. This indicates a mixed sentiment among institutional investors, which can provide insights into the stock's potential direction. Additionally, insider activity suggests a lack of confidence, as insiders sold $105.6 million worth of shares in the past year without any purchasing activity.
This selling spree could be interpreted as a warning sign for potential investors, indicating that insiders may not believe the stock is poised for recovery in the near term. The contrast between guru activity and insider selling patterns adds layers of complexity to the valuation narrative.
What This Means for Investors Considering the current price of $52.35 against the GF Value™ estimate of $84.71, Roblox Corp appears to be undervalued. Nonetheless, the warnings regarding a possible value trap and the company's ongoing financial struggles necessitate caution. Investors should weigh the potential upside against the inherent risks associated with an unprofitable and cash-flow-negative business model.
For a more detailed analysis, visit the Roblox Corp RBLX stock page, and explore additional insights on the GF Value™ page.
Frequently Asked Questions What is RBLX's GF Score™?
RBLX's GF Score™ is 66/100, indicating that it is above average compared to its peers, reflecting a combination of growth potential and financial metrics.
Is RBLX overvalued or undervalued?
According to GF Value™, RBLX is undervalued at its current price of $52.35, which suggests there is potential for growth to its estimated fair value of $84.71.
What is RBLX's P/E ratio?
RBLX does not have a P/E ratio available due to its current unprofitability. This makes traditional earnings-based valuation methods inapplicable for analysis.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
OAKLAND, Calif.--(BUSINESS WIRE)--e.l.f. Cosmetics, a brand from e.l.f. Beauty (NYSE: ELF) today announced a collaboration with Sanrio® to bring Kuromi™ into Glow Up!, e.l.f.'s immersive beauty experience on Roblox. Marking Kuromi's first collaboration inside another brand on Roblox, the partnership brings together two kindred spirits known for bold disruption with a kind heart. Arriving just in time for Kuromi's Halloween birthday and her annual Month of Mischief, the limited-time experience t.
A legal setback and a Wall Street downgrade have deepened the slide in one of gaming's best-known platforms. Roblox (NYSE:RBLX | RBLX Price Prediction) stock is down 38% year to date (YTD) to $50.41 in recent trading.
Video games keep players hooked for hours, and that engagement is turning into steady growth for the industry. Global games revenue reached about $202 billion in 2025, up 9%, and market researcher Newzoo forecasts the industry to grow to $214 billion in 2026.
Take-Two Interactive's (TTWO -1.96%) Grand Theft Auto VI is set to be the biggest growth driver for the industry over the next few years. The release date is set for Nov. 19. Here's how four top video game stocks could benefit or face greater competition from this release, and whether you should consider buying them now.
Image source: Getty Images.
Take-Two Interactive
Take-Two publishes Grand Theft Auto (GTA) through its Rockstar Games label, along with NBA 2K, Borderlands, Red Dead Redemption, and mobile games like Toon Blast. As of Oct. 15, 2026, the stock is down about 20% over the past year.
GTA has been an industry best-seller for 13 years. GTA V has sold a cumulative 230 million units since its 2013 release, setting high expectations for the next installment.
Management expects net bookings -- a non-GAAP measure of revenue -- to rise about 20% this fiscal year to roughly $8.1 billion. GTA VI is likely to be a major driver of Take-Two's growth over the next year, as reflected in the stock's valuation.
The stock trades at a forward price-to-earnings (P/E) ratio of 30 based on Wall Street's earnings estimates for the current fiscal year ending in March. Analysts expect earnings to grow about 27% annually in the next few years, which could support market-beating returns. I would consider buying a starter position now and wait to buy more after sales data confirms whether the game is meeting expectations.
NTDOY Nintendo$13.22+$0.28 (+2.16%)
OTC · As of 4:00 PM ET 10/16/26
Nintendo
Nintendo (NTDOY +2.16%) has sold about 24 million Switch 2 consoles, following the monster success of the original Switch, which sold over 156 million units. It has built a large following of fans through franchises like Mario Kart, Donkey Kong, and Animal Crossing. But its stock is down about 37% over the past year, as investors worry about growth after a Switch 2 price increase.
GTA VI is not currently planned to launch on either Switch game system, so Nintendo will have to compete for players' wallets with games like Nintendo Switch Sports Resort and The Legend of Zelda: Ocarina of Time. President Shuntaro Furukawa has said rising memory chip costs will pressure hardware profits, but the plan hasn't changed: grow the number of console owners first, then sell them more games, which is the real profit engine.
The stock trades at a trailing P/E of 19, with management forecasting only 3% growth in operating profit for the March-ending fiscal year. Given the competition from Take-Two's upcoming release and weak profit guidance, I would not pay this premium to hold Nintendo stock right now.
RBLX Roblox$49.55-$1.58 (-3.09%)
NYSE · As of 4:00 PM ET 10/16/26
Roblox
Roblox (RBLX -3.09%) runs an online platform where its 123 million daily users play games built by outside creators. The stock is down about 63% over the past year as users are spending less on game content.
Revenue grew 36% year over year in the second quarter of 2026, but bookings rose only 8% as players spent less per hour, especially younger users in the U.S. and Canada. Management expects third-quarter bookings to fall 14% to 18%. It still believes Roblox can grow sales by more than 20% per year over the long term and eventually capture 10% of global gaming revenue, up from a low-single-digit share today.
GTA VI competes with Roblox mainly among older teens and adults, a group Roblox is trying to reach. But the bigger problem is spending on its own platform. Given its weakening engagement trends and slowing bookings, I would hold off on buying Roblox stock right now.
Sony
Sony's (SONY +0.77%) PlayStation 5 (PS5) had sold 93.7 million units, as of March 31, 2026, with 125 million PlayStation monthly active users. Gaming generated about 42% of the company's operating profit in the June-ending quarter, while the stock is down about 14% over the past year.
Sony is GTA VI's main console partner, so it stands to benefit from players buying the game on the PS5 through the PlayStation Store. In its July 31, 2026, question-and-answer session with analysts, management said it expects several major new titles this year to support overall market momentum. This would include GTA VI.
Across all the company's segments, including gaming, music, movies, and imaging solutions, it expects full-year sales to be slightly up, with operating profit up about 18% over the prior year.
The stock trades at a trailing P/E of 20. That's a fair valuation, but with gaming contributing less than half of its profit, Take-Two remains the single best stock to profit from GTA VI.
Roblox Corp (NYSE:RBLX), the online gaming platform, recorded a modest weekly recovery in player activity, although year-on-year declines in concurrent users widened as comparisons with last year became tougher.
Wedbush said weekly concurrent users (CCUs), which measure players online simultaneously, rose to 15.2 million from 14.8 million, while its proxy for daily active users (DAUs) increased to 44.6 million.
The CCU decline widened to 18% year-on-year from 14% the previous week, while estimated DAU growth remained down 14% for a third consecutive week.
The broker attributed the deterioration in the CCU growth rate largely to the comparison with last year, saying the previous week's decline had benefited from a weaker year-earlier figure.
The latest 18% decline was broadly in line with the 17% to 19% annual contraction recorded since early September, suggesting the headline deterioration did not reflect a fresh slowdown in underlying engagement.
However, the absolute increase in weekly CCUs and the recovery in estimated DAUs after three weeks of declines point to a modest bounce from recent lows rather than a decisive change in momentum.
Weekend activity remains a particular weakness, with Saturday concurrent users reaching about 27 million compared with 37 million a year earlier, highlighting the gap in peak engagement.
Steal An Egg remained the platform's most popular experience, although Wedbush suspects its core audience skews young and generates relatively little revenue per user, potentially limiting its contribution to monetisation.
The latest figures, therefore, offer some evidence of stabilisation in player activity, but persistent annual declines and weaker weekend peaks suggest Roblox has yet to demonstrate a sustained recovery in engagement.
STUB (NYSE:STUB – Get Free Report) and Roblox (NYSE:RBLX – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability This table compares STUB and Roblox’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets STUB -93.54% -9.50% -2.67% Roblox -17.60% -292.85% -10.13% Institutional & Insider Ownership 94.5% of Roblox shares are held by institutional investors. 31.0% of STUB shares are held by insiders. Comparatively, 10.1% of Roblox shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation This table compares STUB and Roblox”s top-line revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio STUB $1.75 billion 1.26 -$1.91 billion ($5.74) -1.00 Roblox $4.89 billion 7.01 -$1.07 billion ($1.43) -35.80 Roblox has higher revenue and earnings than STUB. Roblox is trading at a lower price-to-earnings ratio than STUB, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a breakdown of current ratings for STUB and Roblox, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score STUB 2 6 6 0 2.29 Roblox 5 13 12 1 2.29 STUB presently has a consensus target price of $10.17, indicating a potential upside of 76.35%. Roblox has a consensus target price of $56.96, indicating a potential upside of 11.27%. Given STUB’s higher probable upside, equities analysts clearly believe STUB is more favorable than Roblox.
Summary Roblox beats STUB on 9 of the 13 factors compared between the two stocks.
About STUB (Get Free Report)
Stubhub Holdings Inc., through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc. is based in NEW YORK.
About Roblox (Get Free Report)
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
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Roblox (RBLX - Free Report) closed the most recent trading day at $47.54, moving -3.98% from the previous trading session. This change lagged the S&P 500's daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
The online gaming platform's shares have seen a decrease of 1.45% over the last month, surpassing the Consumer Discretionary sector's loss of 1.66% and falling behind the S&P 500's gain of 2.06%.
Investors will be eagerly watching for the performance of Roblox in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. In that report, analysts expect Roblox to post earnings of -$0.41 per share. This would mark a year-over-year decline of 10.81%. In the meantime, our current consensus estimate forecasts the revenue to be $1.62 billion, indicating a 15.85% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.55 per share and revenue of $6.88 billion. These totals would mark changes of -0.65% and +1.3%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Roblox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Roblox currently has a Zacks Rank of #4 (Sell).
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
T-Rex 2X Long RBLX Daily Target ETF (BATS:RBLU – Get Free Report) was the recipient of a significant growth in short interest in the month of September. As of September 30th, there was short interest totaling 141,164 shares, a growth of 285.2% from the September 15th total of 36,643 shares. Based on an average daily trading volume, of 453,109 shares, the days-to-cover ratio is presently 0.3 days. Currently, 201.7% of the company’s shares are short sold.
RBLU traded up $0.07 during midday trading on Monday, hitting $5.38. The company’s stock had a trading volume of 63,586 shares, compared to its average volume of 352,433. The firm has a 50-day moving average price of $4.35 and a two-hundred day moving average price of $7.15. T-Rex 2X Long RBLX Daily Target ETF has a 52-week low of $2.70 and a 52-week high of $101.39.
Hedge Funds Weigh In On T-Rex 2X Long RBLX Daily Target ETF An institutional investor recently raised its stake in T-Rex 2X Long RBLX Daily Target ETF stock. Citadel Advisors LLC boosted its holdings in T-Rex 2X Long RBLX Daily Target ETF (BATS:RBLU – Free Report) by 338.2% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 50,551 shares of the company’s stock after acquiring an additional 39,016 shares during the quarter. Citadel Advisors LLC owned 72.22% of T-Rex 2X Long RBLX Daily Target ETF worth $451,000 at the end of the most recent quarter.
T-Rex 2X Long RBLX Daily Target ETF Company Profile (Get Free Report) The T-REX 2X Long RBLX Daily Target ETF (RBLU) is an exchange-traded fund that is based on the Roblox Corp. Class A index. The fund aims to provide 2x leveraged exposure to the daily price movement of Roblox Corp. stock (NYSE: RBLX), less fees and expenses. RBLU was launched on Mar 4, 2025 and is issued by Tuttle Capital Management.
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Shares of Roblox Corporation (NYSE:RBLX – Get Free Report) were up 6.7% on Friday. The stock traded as high as $48.68 and last traded at $48.5860. 2,168,960 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 11,818,009 shares. The stock had previously closed at $45.52.
Key Headlines Impacting Roblox Here are the key news stories impacting Roblox this week:
Positive Sentiment: Viral game boosts engagement expectations: The popularity of Steal an Egg appears to have driven better-than-expected third-quarter activity on Roblox. Wedbush reportedly raised its estimates to approximately $1.7 billion in bookings and $215 million in EBITDA, compared with previous estimates of $1.64 billion and $193 million. Roblox Is Up After Viral Hit Boosts Q3 Engagement Ahead of Earnings Positive Sentiment: Potential earnings catalyst: Roblox will report third-quarter 2026 results after market close on October 29. Investors are increasingly positioning for a possible upside surprise after prior concerns about slowing bookings growth and weaker monetization among younger users in the United States and Canada. Roblox to Report Third Quarter 2026 Financial Results Neutral Sentiment: Analyst views remain mixed: Wedbush maintained a Hold rating, while the reported median analyst price target is $60, above the recent trading level. That suggests upside potential, but the Hold stance underscores uncertainty about whether viral hits can translate into durable growth. Wedbush Sticks to Its Hold Rating for Roblox Neutral Sentiment: Institutional positioning is divided: In the latest reported quarter, 380 institutional investors added RBLX shares while 418 reduced their positions. Large purchases by FMR and AQR were offset by sizable reductions from Capital International Investors and Artisan Partners, indicating a lack of consensus. Negative Sentiment: Heavy insider selling: Company insiders reportedly made 77 open-market sales and no purchases during the past six months. While sales may reflect compensation or diversification, the absence of insider buying can weigh on investor confidence. Negative Sentiment: Competitive pressure from AI game creation: Alphabet and Unity announced a generative-AI gaming partnership that could make game development faster and more accessible, potentially challenging Roblox’s creator ecosystem and competitive position. Alphabet and Unity Level Up Game Development Wall Street Analysts Forecast Growth Several equities research analysts have recently commented on the company. Oppenheimer restated an “outperform” rating on shares of Roblox in a research note on Friday, September 11th. Seaport Research Partners lowered shares of Roblox to a “neutral” rating in a research report on Monday, June 29th. Barclays dropped their price objective on shares of Roblox from $60.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Monday, August 3rd. Morgan Stanley cut their price objective on shares of Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a research report on Friday, July 31st. Finally, Jefferies Financial Group downgraded shares of Roblox from a “hold” rating to an “underperform” rating and set a $38.00 target price on the stock. in a report on Monday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Roblox has an average rating of “Hold” and a consensus price target of $60.79.
Get Our Latest Report on Roblox Roblox Price Performance The stock has a fifty day moving average of $42.30 and a two-hundred day moving average of $47.94. The stock has a market cap of $32.22 billion, a price-to-earnings ratio of -33.63 and a beta of 1.47. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82.
Roblox (NYSE:RBLX – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.34) by $0.08. The firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%. Roblox’s revenue was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.41) earnings per share. On average, equities research analysts anticipate that Roblox Corporation will post -1.39 earnings per share for the current year.
Insiders Place Their Bets In other Roblox news, insider Mark Reinstra sold 17,934 shares of the company’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $680,774.64. Following the transaction, the insider directly owned 398,064 shares in the company, valued at approximately $15,110,509.44. This represents a 4.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen K. Chopra sold 17,509 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $664,641.64. Following the completion of the transaction, the chief financial officer directly owned 363,249 shares of the company’s stock, valued at approximately $13,788,932.04. This trade represents a 4.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 186,390 shares of company stock worth $7,283,371. Insiders own 10.05% of the company’s stock.
Institutional Investors Weigh In On Roblox Several institutional investors have recently modified their holdings of RBLX. Hanson & Doremus Investment Management purchased a new position in Roblox in the 1st quarter valued at approximately $25,000. Basecamp Wealth Advisors LLC boosted its position in Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after purchasing an additional 252 shares in the last quarter. Root Financial Partners LLC boosted its position in Roblox by 100.7% during the first quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock worth $32,000 after purchasing an additional 283 shares in the last quarter. Western Wealth Management LLC acquired a new stake in Roblox in the first quarter valued at $33,000. Finally, LM Advisors LLC acquired a new stake in Roblox in the fourth quarter valued at $35,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.
About Roblox (Get Free Report)
Roblox Corporation (NYSE:RBLX) operates an online entertainment platform where users can create, share and experience interactive 3D content. The platform hosts user-generated games and other virtual experiences across genres, including entertainment, social activities, education and simulated environments.
Roblox provides development tools through Roblox Studio, enabling creators to build and publish experiences, digital items and other content. Users can customize avatars, interact with others and access the platform across supported computers, mobile devices, gaming consoles and virtual reality systems.
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The economics of game development are undergoing a structural shift. Historically, creating interactive 3D media required specialized coding knowledge or participation in closed, proprietary ecosystems.
Roblox Corp (NYSE:RBLX) is seeing stronger-than-expected third-quarter engagement, led by the hit game Steal an Egg, prompting Wedbush to raise its estimates.
The firm now expects third-quarter Bookings of $1.7 billion and EBITDA of $215 million, up from prior estimates of $1.64 billion and $193 million.
Per third-party estimates cited in the note, total platform hours fell 7% year over year in the quarter, a smaller decline than the 16% drop Wedbush had modelled.
The decline was weighed down by the fading Cohort of Five titles. Excluding those games, hours grew 37% year over year, accelerating from 20% in the second quarter.
Steal an Egg, this year’s most successful launch, reached peak daily hours comparable to last year’s GAG and Steal a Brainrot. Engagement appears to have rolled over, however, falling 9% and 18% week over week in the last two weeks.
Wedbush models average Bookings per Hour up 1% year over year in the third quarter and down 2% in the fourth, reflecting normal seasonality, with upside to under-13 monetization if Steal an Egg sustains its momentum.
Wedbush expects the fourth-quarter guide to be at least in line with the Street, assuming management does not factor in significant headwinds from the November launch of GTA 6. The firm is more cautious than consensus, modelling fourth-quarter Bookings of $1.91 billion against the Street’s $1.98 billion, because it assumes GTA 6 will pull engagement from the broader gaming ecosystem, including Roblox.
Wedbush said management has an opportunity to elaborate on its refined search and discovery philosophy, first outlined at the Roblox Developers Conference 2026. The approach is seen as less penalizing to short-lived, meme-like hits.
A recalibrated algorithm serving hyper-personalized recommendations to younger users could restart the platform’s hit factory and revive under-13 engagement and monetization, the firm said. Onboarding established intellectual property and successful Incubator launches could also support the age-up thesis.
Still, Wedbush said a consistent wave of new viral hits is likely needed to rebuild investor confidence. Almost all of the investors it recently spoke with, fewer than a handful, were cautious on Roblox’s guidance, and fewer than half expect a return to growth of 20% or more over the longer term.
Wedbush said Roblox looks inexpensive if it can sustain growth of 20% or more in 2027 and beyond.
GameStop has surged 33% in a month, but the clock is running out on a warrant deadline that sits well above where the stock trades today, and Ryan Cohen keeps buying anyway.
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Shares of GameStop (NYSE:GME | GME Price Prediction) are pushing higher against a softer gaming sector, extending a month-long rally as the company’s warrant deadline approaches. GameStop stock is at $25.47, up 4% in afternoon trading. That gain still leaves GameStop shares far beneath the exercise price attached to the company’s warrants.
Meanwhile, Take-Two Interactive (NASDAQ:TTWO) shares are at $210.50, up 3%, moving in step with GameStop as the Grand Theft Auto VI launch draws closer. Roblox (NYSE:RBLX) shares trade at $45.06, down 3%, breaking from both names as age-verification headwinds weigh on sentiment.
For a gaming-sector read, the VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) is at $97.01, down 0.3%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY), a broad-market benchmark, is at $775.67, down 0.2%. Against both readings, GameStop’s climb looks company-specific.
GameStop’s Warrant Deadline Comes Into Focus The warrants GameStop distributed carry an exercise price of $32 and expire at the end of October. Over the past month, GameStop stock is up 33%, a run that now extends into the final weeks before that expiry. The company hasn’t disclosed a fresh development tied to the current move, which leaves positioning ahead of GameStop’s warrant deadline as the clearest explanation.
GameStop sells games, hardware and collectibles through its stores. It also holds a large cash position and a large position in eBay (NASDAQ:EBAY) common stock, the company GameStop has proposed acquiring. That cash gives GameStop options beyond the eBay proposal.
Anticipation around Grand Theft Auto VI, the next major release from Take-Two’s Rockstar Games label, gives Take-Two shares a company-specific catalyst. Roblox faces a harder setup, as the company’s mandatory age-check rollout has been a drag on sentiment. A recent Barron’s report described a new gaming platform from two technology rivals as a threat that could lure creators away from Roblox.
Cohen’s Buying Meets a Distant Strike Price GameStop’s bull case starts with chair and chief executive Ryan Cohen, who has been buying GameStop shares in the open market with his own money. GameStop holds the cash to act, and a completed eBay deal could transform what the company is. Cohen’s purchases signal confidence from the insider closest to the plans.
For the bears, GameStop stock sits far beneath the warrants’ exercise price with expiry close at hand. The run has arrived without a business update behind it, which can leave the gains exposed once the deadline passes, the exact setup our free playbook on sizing speculative positions is built around.
What to Watch Next Shareholders can watch for whether GameStop stock gains ground on the warrants’ exercise price before the end-of-October expiry, as any update on the proposed eBay acquisition could reshape the story faster than the warrant calendar.
For Take-Two, the Grand Theft Auto VI launch window is the next major test, and Roblox traders could look for signs that the age-check rollout is fading as a headwind. Investors should keep their position sizes measured until GameStop’s warrant expiry and any eBay news are behind them.
Contact [email protected] for any questions or corrections.
Earlier this year, video game company Roblox (RBLX -1.93%) implemented a set of more restrictive safety features on its interactive entertainment platform in an effort to protect its younger users. Those moves to provide more effective protection for its core user base were necessary, but they have created some significant headwinds and challenges for the business.
The number of daily active users (DAUs) on Roblox's platform declined substantially on a sequential basis in the second quarter, and its bookings of $1.56 billion in the quarter missed Wall Street analysts' consensus estimate by approximately $40 million. The company's midpoint guidance also calls for bookings to decline roughly 16% in the current quarter. As a result of these challenges, the company's share price is down roughly 44% across 2026's trading -- but one stat suggests that the stock has strong recovery potential.
Image source: Getty Images.
Despite declining on a quarter-over-quarter basis, Roblox's 123 million DAUs in Q2 still represented roughly 10% growth year over year. Seasonal variability in user engagement is nothing new for the company. It's encouraging that the business's platform has managed to continue adding new users, even as it faces headwinds connected to safety concerns and user protection initiatives.
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While much of its year-over-year user growth is being driven by big gains in some markets that monetize at lower levels, the company's DAUs in the U.S. and Canada were still up 6% year over year last quarter. With the company still bringing new players and creators onboard at a solid clip, there's little indication that Roblox's platform is losing its long-term viability.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roblox. The Motley Fool has a disclosure policy.
Roblox Corporation (NYSE: RBLX) today announced that it will report its third quarter 2026 financial results after the market close on Thursday, October 29, 2026. Roblox will host a conference call to discuss the results at 1:30 p.m. PST / 4:30 p.m. EST the same day.
The live webcast of the conference call can be accessed from the Roblox investor relations website at ir.roblox.com. Following the call, an audio replay and transcript will be available at ir.roblox.com.
About Roblox
Roblox is an immersive gaming and creation platform that offers people millions of ways to be together, inviting its community to explore, create and share endless unique games. Our vision is to reimagine the way people come together– in a world that's safe, civil, and optimistic. To achieve this vision, we are building an innovative company that, together with the Roblox community, has the ability to strengthen our social fabric and support economic growth for people around the world. For more about Roblox, please visit corp.roblox.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261008907436/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Unity's CEO just mapped out a path for a Google-built game creation platform to reach living room consoles, and the market is starting to listen. But with the product unlaunched and the console goal still a stated hope, the 2%…
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Shares of Unity Software (NYSE:U | U Price Prediction) are pulling away from the rest of the gaming group after the company’s chief executive described how a new creation platform built with Alphabet‘s (NASDAQ:GOOGL) Google could eventually reach game consoles. Unity stock is at $46.51, up 2% in morning trading. For reference, the 52-week high for Unity stock is $52.15, and the shares haven’t reached that level today.
Meanwhile, Roblox (NYSE:RBLX) stock is at $46.24, down 0.4%, a muted reaction in the shares of the company whose own creator platform sits closest to the new product. Similarly, Take-Two Interactive (NASDAQ:TTWO) stock is at $204.94, up 0.5%, barely moving alongside Roblox stock.
Elsewhere, for a sector read, the VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) is unchanged at $97.32. A broad-market gauge, the SPDR S&P 500 ETF Trust, is at $774.22, down 0.4%. With both funds close to flat and the two gaming peers barely moving, the gain in Unity stock traces to company-specific news.
Bromberg Maps Spark From the Web to Consoles Unity and Google announced their artificial intelligence gaming partnership. Speaking on October 7 afterward, Unity chief executive Matthew Bromberg said Unity Spark would launch on the web, move to mobile and ultimately expand to all platforms. Bromberg added that he hopes creators would eventually build console games with Spark. That final step would carry the Google partnership from the browser to the living room, a far bigger goal for Unity than a web launch alone.
In Bromberg’s framing, Unity’s long-standing advantage is its position as a build once, distribute everywhere platform. His stated aim is letting a new class of creators make a real piece of interactive entertainment rather than low-quality generated content. Such a pitch puts Spark as an on-ramp to serious game making at Unity, with the company’s paid tools waiting further down the road.
Three Business Models, Three Different Reactions Unity sells the engine and subscription development tools that studios build on, and the company monetizes advertising through its own network as a second business, with a free, prompt-driven creation layer carrying Google’s distribution broadening the top of the funnel that Unity charges for.
Roblox owns both the building tools and the platform where games are played, so a free Google-backed design layer competes for the same creators Roblox depends on, while Take-Two publishes finished titles through its own labels, which places the company further from the debate over who supplies creator tools. Muted moves in Roblox and Take-Two shares line up with those different exposures.
Unity’s upside depends on creators who start inside a free Google product graduating into paid Unity tools once Spark arrives, which would turn distribution the company couldn’t buy into revenue. On the risk side, Unity Spark has yet to launch, the console goal is so far a stated hope, and Unity stock has already run on an announcement with no revenue attached.
What to Watch Next Spark’s web launch is the first concrete milestone for Unity, followed by the move to mobile that Bromberg outlined. Any detail on console timing would turn Bromberg’s stated hope into something closer to a plan.
The 2% gain in Unity stock prices in a partnership that has yet to produce sales, which argues for patience. Until Spark shows up in Unity’s results, investors should size their U stock positions with the unlaunched product and the open console question in mind.
Contact [email protected] for any questions or corrections.
Google just handed Unity a free game builder that needs zero coding skills, and the ripple across gaming stocks reveals exactly which business models investors think survive a world where anyone can make a game.
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A free game builder turning plain-language prompts into playable titles is sorting gaming stocks by who owns the creator relationship. Unity Software (NYSE:U | U Price Prediction) stock is up 4% to $46.57 in morning trading after the company announced an artificial intelligence (AI) gaming partnership with Alphabet‘s (NASDAQ:GOOGL) Google.
Meanwhile, Roblox (NYSE:RBLX) stock is falling 4% to $43.87 as the announcement targets the user-built game market at the heart of its business. Take-Two Interactive (NASDAQ:TTWO) stock is down 0.3% to $201.90, a quiet move for a publisher of finished titles.
At the same time, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.4% to $776.24, which puts the gain in Unity shares against a softer broad market. The VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) counts Unity, Roblox and Take-Two among its holdings, so the sector fund carries both sides of this split; this fund is down 0.6% to $97.64.
Google Brings Prompt-Driven Game Creation to Unity Unity and Google announced a strategic partnership for an integrated AI gaming platform. Google’s experimental Playground lets adult users generate and customize playable games from natural-language prompts with no coding required. Later this year, the two companies will introduce Unity Spark, an expanded product built on the Unity runtime that keeps the simple prompt-driven interface while opening professional-level mechanics and high-fidelity three-dimensional capability.
Playground titles will appear across Google’s consumer products, and creators can sign in through Google Play Games profiles for leaderboards, matchmaking and community features. That distribution, which Unity couldn’t easily buy on its own, extends the surface the company monetizes.
Create Solutions revenue at Unity reached $158 million in Q2 2026, up 2% year over year (YoY). Ad revenue at Unity’s Grow Solutions segment rose 35% YoY. Presented as the paid step up from a free prompt-driven tool, Unity Spark could accelerate the slower Create side.
Unity’s strategic revenue guidance for Q3 2026 is $540 million to $550 million, up 44% to 47% YoY. Those numbers precede the Google partnership, and the quarter closed before Spark’s planned debut.
Why Roblox Falls While Take-Two Stays Put Roblox owns both the building tools and the platform where its games are played, so a free prompt-driven layer carrying Google’s distribution lands directly on its core business.
Take-Two publishes finished titles through its Rockstar Games and 2K labels, a business model that sits outside the creation-tools contest. The quiet reaction suggests the market sees little bearing on publishers. Grand Theft Auto VI, set to launch November 19, remains the larger catalyst for Take-Two.
Year to date (YTD), Unity stock is up 5% while Roblox stock is down 46%. Unity chief executive Matt Bromberg called Q2 “arguably the best quarter in Unity’s history as a public company,” and the Google deal adds a creation-side story to that advertising momentum. Even after the gain, Unity stock remains below its 52-week high of $52.15.
What to Watch Next Whether creators who start inside Playground convert into paying Unity customers once Unity Spark arrives is the key test for the partnership. Shareholders can watch for Unity’s Q3 results, measured against its guidance for strategic Create revenue of $159 million to $163 million. Management at Unity has also targeted profitability under generally accepted accounting principles as soon as Q3, which could strengthen the company’s standing as Spark rolls out.
The competitive pressure on Roblox looks real, though Google’s Playground remains experimental and Unity Spark hasn’t launched yet. Roblox still controls an established creator base, which gives the company room to respond. Those reconsidering their exposure may opt to trim their Roblox positions, given its 46% YTD decline and a free building layer aimed at the same creators.
Contact [email protected] for any questions or corrections.
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Roblox (RBLX - Free Report) ended the recent trading session at $44.58, demonstrating a +1.04% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.66%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 1.05%.
Shares of the online gaming platform have appreciated by 1.87% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 6.5%, and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Roblox in its upcoming earnings disclosure. In that report, analysts expect Roblox to post earnings of -$0.41 per share. This would mark a year-over-year decline of 10.81%. Simultaneously, our latest consensus estimate expects the revenue to be $1.62 billion, showing a 15.85% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.55 per share and a revenue of $6.88 billion, signifying shifts of -0.65% and +1.32%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Roblox boasts a Zacks Rank of #4 (Sell).
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 24% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Buyers returned for a second straight session after Unity Software announced early engine support for Meta's upcoming VR headset, but the rally hinges on something that has not happened yet and may not for months.
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The buying has continued for a second day, it seems. It’s turning Unity Software (NYSE:U | U Price Prediction) into a live test of what early engine support for a new virtual-reality headset is worth. Meta Platforms (NASDAQ:META) is the maker of that device, Meta VR Glasses, which is expected to reach retail customers next spring.
Unity Software stock is up 5% to $43.02 in Thursday afternoon trading, marking a second straight advance for the shares.
Checking in on the peers, Roblox (NYSE:RBLX) shares are inching up 0.8% to $42.70. Meanwhile, Take-Two Interactive (NASDAQ:TTWO) stock is falling 3% to $201.94.
At the same time, the VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) is up 0.3% to $96.79. For a broad-market check, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.2% to $761.05. Unity Software stock is trading as a single-name story inside a gaming group that’s barely moving and a broad market that’s falling.
Day-One Engine Support for a New Headset Keeps Buyers Engaged Unity Software announced day-one engine support for Meta VR Glasses in the previous session, noting that developers can begin building and testing experiences now, which gives studios more time to prepare titles before the hardware reaches retail customers. No new company release has been confirmed in the current session.
Timing anchors the bull case for Unity Software. Engine support that lands well before the hardware puts the company in front of every studio planning a title for Meta VR Glasses, and developers generally reuse the tools they already know. Unity Software held its August earnings call. On it, chief executive Matt Bromberg stated, “We are really excited to be in a position to help platforms, any and all platforms, be optimized for Unity, because Unity is by far the leading platform for game making in the world.”
However, Unity Software’s revenue from Meta VR Glasses depends on developer adoption that hasn’t happened yet. Unity Software stock is down 3% year to date, leaving the shares below where they began the year despite the rally.
Unity’s Growing Business Advertising drives Unity Software’s growth for now. In Q2 2026, Unity Software’s revenue rose 23.9% year over year to $546.47 million, led by a 35% jump in Grow Solutions to $389 million on the strength of Unity Vector AI in the Unity Ads Network. Those results give Unity Software the financial room to fund a virtual-reality push while headset demand takes shape.
The slide in Take-Two shares and the small gain in Roblox stock leave the rest of the gaming group out of step with Unity Software. Roblox and Take-Two carried heavier weightings than Unity Software in the VanEck fund as of June 30, at 7% and 6.9% of net assets against 4.7%, which helps explain the ETF’s modest move. Nintendo (OTC:NTDOY) is another holding.
Developer Adoption Decides What Unity Software’s Head Start Is Worth Unity Software’s next major checkpoint is its Q3 2026 report, with the company guiding its strategic revenue to $540 million to $550 million and targeting a profit under standard accounting rules in the quarter. Shareholders can watch for signs of studios committing titles to Meta VR Glasses before the device reaches retail customers next spring. Named launch titles from well-known studios could give the shares fresh support, while a quiet stretch may leave the rally vulnerable.
Repeat buying of the same announcement can lose momentum quickly, particularly for Unity Software stock given its history of sharp swings, as the return from Unity’s Meta VR Glasses support depends on studios shipping titles for a device that isn’t on sale yet.
Contact [email protected] for any questions or corrections.
Ryan Cohen keeps reaching into his own pocket to buy GameStop shares, and his conviction is pulling the entire gaming sector along for the ride. Here is what the insider buying pattern reveals about where GME could be headed.
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GameStop (NYSE:GME | GME Price Prediction) stock popped 4% to $24.79 on Wednesday, extending recent gains driven by Chairman and CEO Ryan Cohen’s continued open-market share purchases. Take-Two Interactive Software (NASDAQ:TTWO) shares advanced 3% to $209.78, while Roblox (NYSE:RBLX) stock also rose 3% to $42.53. Gaming-related names found support as attention remained focused on insider buying at GameStop.
The VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) climbed 1% to $96.84. Broader markets moved higher, with the SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) up 0.52% to $768.20. GameStop’s latest headlines center on Ryan Cohen’s repeated buying, which has reinforced investor focus. The company recently reported a mixed quarter in which sales declined 19% while net income rose 77%, aided by cost cuts, collectibles growth, and investment gains, including from its eBay stake.
Ryan Cohen Continues Buying Binge Ryan Cohen purchased 450,000 GameStop shares at approximately $23.48 each, for a total value of about $10.6 million, according to a recent SEC filing. The transaction follows earlier September purchases that included roughly 1.15 million shares for about $26.4 million and 1 million shares for about $20.4 million. Cohen’s direct holdings now stand near 41 million shares, representing roughly 8.8% of the company when including warrants.
These open-market buys form part of a broader pattern of insider accumulation throughout the year with no reported sales. The activity has helped sustain attention on GameStop shares even as the traditional video-game hardware and software business faces ongoing pressure.
Take-Two Interactive and Roblox Also Advance Take-Two Interactive stock posted a solid gain. The company develops and publishes major interactive entertainment titles across console, PC, and mobile platforms. Take-Two Interactive shares have responded to both sector sentiment and its own pipeline developments in recent sessions.
Roblox stock moved higher as well. Roblox operates a platform that allows users to create and share immersive experiences, generating revenue primarily through in-platform purchases. Both Take-Two Interactive and Roblox operate in the broader gaming ecosystem but differ from GameStop’s retail and collectibles-focused model.
Gaming Group Sees Broader Participation The VanEck Video Gaming and eSports ETF’s advance reflected measured strength across the niche. GameStop’s second-quarter results showed net sales of $790.2 million, down 19% year over year, while net income rose 77% to $298.7 million. Collectibles sales grew sharply and now account for a larger share of the mix, helped by cost discipline and non-operating gains tied to the company’s investment portfolio.
Similarities among GameStop, Take-Two Interactive, and Roblox include exposure to consumer spending on entertainment and digital content. Differences appear in business models, with GameStop emphasizing physical retail, collectibles, and balance-sheet management, while the other two focus on content creation and platform engagement. Insider conviction and a larger cash and investment position remain central to the GameStop narrative.
GME Stock: What to Look For Now Ryan Cohen’s repeated purchases have provided a clear catalyst for GameStop stock in recent weeks. The mixed quarterly results highlight progress on profitability and mix shift even as top-line challenges persist. Strategic interest around the eBay investment and ongoing cost management continue to factor into investor discussions.
Investors should consider keeping position sizes modest given the elevated volatility that has long characterized GameStop stock. Further insider buying, sustained collectibles momentum, or clearer progress on strategic initiatives could support the shares, while weaker sales trends or shifts in retail sentiment may renew pressure across the group.
Contact [email protected] for any questions or corrections.
Roblox (RBLX - Free Report) closed at $41.18 in the latest trading session, marking a -1.62% move from the prior day. This change lagged the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.09%.
Shares of the online gaming platform have appreciated by 1.38% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 8.3%, and the S&P 500's loss of 0.24%.
The investment community will be closely monitoring the performance of Roblox in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.41, marking a 10.81% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.62 billion, down 15.85% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.55 per share and a revenue of $6.88 billion, indicating changes of -0.65% and +1.32%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Roblox boasts a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 30% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Roblox (RBLX - Free Report) ended the recent trading session at $41.86, demonstrating a -9.86% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.92%.
Shares of the online gaming platform have appreciated by 20.53% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 8.94%, and the S&P 500's gain of 0.96%.
Investors will be eagerly watching for the performance of Roblox in its upcoming earnings disclosure. In that report, analysts expect Roblox to post earnings of -$0.41 per share. This would mark a year-over-year decline of 10.81%. Alongside, our most recent consensus estimate is anticipating revenue of $1.62 billion, indicating a 15.85% downward movement from the same quarter last year.
RBLX's full-year Zacks Consensus Estimates are calling for earnings of -$1.55 per share and revenue of $6.88 billion. These results would represent year-over-year changes of -0.65% and +1.32%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Roblox. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Roblox possesses a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Roblox (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 p
Roblox Corp (NYSE:RBLX) was downgraded to "underperform" from "hold" by Jefferies, which viewed its 30% rally following second-quarter results as overly optimistic about bookings over the next 12 months.
The broker maintained its $38 price target, implying 18% downside and a valuation of 19 times its financial year 2027 EBITDA estimate.
Its concern is that US and Canadian user and bookings growth will improve more slowly and at greater cost than markets anticipate.
Reflecting that outlook, Jefferies cut financial year 2026 bookings and EBITDA estimates by 2% and 5%, respectively, and its 2027 forecasts by 6% and 21%.
Its revised 2027 forecasts put bookings and EBITDA 8% and 20% below consensus, respectively, with bookings growth of 5% compared with the consensus forecast of 13%.
That caution reflects its view that growth in 2025 and the first half of 2026 was unsustainable, making 2024 the appropriate baseline for comparison.
In the US and Canada, Jefferies attributed most daily active user growth from roughly 20 million in early 2025 to 26 million in the third quarter of 2025 to high-churn viral hits.
Roblox's shift to an algorithm favoring long-term retention will likely constrain near-term user growth and disrupt near-term bookings, Jefferies wrote.
Without evidence that the algorithm supports more genres and attracts adults, the broker sees little prospect of daily active users in those markets returning above 25 million.
Jefferies nevertheless views new genres and audiences aged 18 and older positively, noting that this demographic accounts for 80% of US gaming spending.
Alongside this focus on adults, Roblox is increasing payouts by 42% for US in-game spending by players aged 18 and older.
Investment demands also include infrastructure for generative artificial intelligence adoption and model training, plus diversification beyond the core platform through Roblox Everywhere.
With those spending commitments confronting slower bookings growth, Jefferies forecasts no EBITDA margin expansion until financial year 2028.
Jefferies just put a target on Roblox that sits well below where shares are trading, and the rest of the gaming group barely flinched. Whether the firm has correctly read Roblox's bookings path will determine if today's selloff is just…
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A Jefferies downgrade is landing directly on Roblox (NYSE:RBLX | RBLX Price Prediction) while the rest of the video game group barely budges. Roblox stock is down 6% to $43.72 after Jefferies cut its rating to Underperform. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.52%, so the overall market is offering only a moderate drag against a selloff concentrated in one gaming name.
Take-Two Interactive (NASDAQ:TTWO) shares are up 0.1% to $201.59, holding steady as the downgrade stays contained to Roblox. Meanwhile, GameStop (NYSE:GME) stock is down 0.7% to $23.23, a modest slip next to the Roblox selloff. Roblox is absorbing the damage alone. Rounding out the picture, the VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) tracks a basket of video game and esports stocks in that corner of the market.
That split between Roblox and its closest peers points to a reassessment of one company’s outlook, with whether Jefferies has read Roblox’s bookings path correctly now the central question.
Jefferies Questions Roblox’s Bookings Outlook Jefferies downgraded Roblox to Underperform from Hold and set a $38 price target. The firm argued that the rally in Roblox shares following the company’s most recent quarterly results had priced in an overly optimistic outlook for bookings. That critique goes after the metric many Roblox followers lean on most to judge how much spending the platform can generate.
Beyond bookings, Jefferies argued that user and monetization growth in the United States and Canada would recover more slowly and at higher cost than investors currently expect. Weaker recovery economics in those markets would pressure Roblox on two fronts at once, reducing growth while lifting expenses, and that combination explains why the firm views the recent run in Roblox stock as overextended.
Rest of the Gaming Group Holds Steady Steady trading in Take-Two stock frames the Jefferies note as a verdict on Roblox’s own bookings path. Roblox depends on a user-generated platform and spending inside those experiences, while Take-Two develops and sells its own franchise games. Any monetization worry at Roblox therefore says little about Take-Two’s prospects.
Diversified funds hold Roblox, Take-Two and GameStop side by side. In funds such as the VanEck Video Gaming and eSports ETF, a hit to one holding gets diluted across the basket. That dilution is what a stock-specific downgrade typically looks like when the rest of the group holds its ground. In that structure, Roblox shareholders carry the downgrade’s full cost while fund holders feel a far smaller share.
What decides the debate is whether Roblox engagement holds up against the bookings outlook Jefferies is questioning. That answer stays out of view until Roblox reports its next quarter, so Roblox stock may remain sensitive to analyst commentary in the meantime. A sturdy engagement showing would weaken the downgrade’s logic, while another soft bookings figure would lend the firm’s view real weight.
What to Watch Next The sharp move in Roblox stock against a nearly flat gaming group argues for a measured approach. Shareholders should keep their positions moderate while the bookings debate plays out, and anyone adding shares after the decline could build exposure in stages.
Traders should look to Roblox’s next quarterly report, where the company’s bookings and engagement figures will put Jefferies’ thesis to a direct test. Any change in user trends across the United States and Canada could confirm or challenge the slower, costlier recovery the firm described.
Contact [email protected] for any questions or corrections.
David Moadel
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
Micron (MU) is seeing more bullish momentum heading into Wednesday's earnings, as Diane explains Baird's price target hike for the stock. Meanwhile, Roblox (RBLX) was slapped with a downgrade from Jefferies over concerns of a waning user base.
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Here Are Monday’s Top Wall Street Analyst Research Calls: BP, Charles Schwab, Fervo Energy, HubSpot, Lumentum, Microsoft, Netflix, Oracle, ServiceNow, Yeti Holdings, and More Wall Street kicked off the week with a flurry of analyst calls spanning energy, tech, and consumer names, and not everyone got good news. Find out which stocks earned fresh upgrades and which ones…
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Roblox Corporation (NYSE:RBLX) shares are trading lower Monday after Jefferies downgraded the stock to Underperform from Hold, arguing its 30% rally since second-quarter results reflects overly optimistic expectations for bookings over the next 12 months.
Roblox stock is feeling bearish pressure. What’s pressuring RBLX stock? Why Jefferies Turned Bearish on RobloxAccording to Investing.com, Jefferies kept its $38 price target, implying 18% downside from current levels. Analyst James Heaney said he supports Roblox’s push into new game genres and adult users but believes “the improvement in U.S. & Canada user and Bookings growth will be longer and more costly than the market expects.” Daily active users in the U.S. and Canada rose from about 20 million in early 2025 to a peak of 26 million in the third quarter of 2025, growth Jefferies attributed mostly to viral hits such as Grow a Garden and Steal a Brainrot that lost players quickly. The firm said Roblox’s new algorithm favors games that retain players over the long term, which it expects will limit user growth in coming quarters.
Jefferies forecasts 5% bookings growth in fiscal 2027, well below the Wall Street estimate of 13%, and cut its own fiscal 2027 bookings estimate by 6% and its EBITDA estimate by 21%. “One of our key concerns is that Roblox will need to sustain elevated investment levels despite slowing bookings growth,” Heaney wrote, comparing Roblox to Meta between 2017 and 2019, when higher spending squeezed margins as revenue growth slowed.
Roblox Shares FallRBLX Price Action: At the time of publication, Roblox shares are trading 4.69% lower at $44.26, according to data from Benzinga Pro.
Image via Shutterstock
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Your 10-year-old son has started playing Roblox, when he realises all of his in-game currency, Robux, is gone.
When you try to find out what happened, he says he was recently promised extra Robux if he followed a link on YouTube. When he signed on at the site link, he was taken to the Roblox site as usual but there was no sign of the extra currency.
He has fallen victim to a fraud where Roblox users – many of whom are children – are being targeted for their login details. With those details criminals can steal the virtual currency and players’ personal data.
Within Roblox, players use Robux to buy virtual items, such as skins or animations for their avatar. You can earn the currency within the game, but it can also be bought. At Roblox’s online store you can buy packages costing up to £199.99.
Using ready-made kits bought on the dark web, fraudsters create a fake login page that is identical in appearance to the legitimate Roblox site.
A screengrab of a scam webpage targeting young Roblox users Photograph: Screengrab“The kid will enter their details and the fake website will actually redirect them to a legitimate Roblox page,” says Gerald Kasulis, the vice-president of global affairs at the cybersecurity company NordVPN. “So ultimately, the kid will get to where they want to go.”
By that stage, however, the criminals will have the details they need for defrauding.
Researchers from NordVPN say that over a seven-day period they found almost 200 addresses selling ready-made phishing pages that provided the tools to defraud Roblox users.
What it looks likeOften the links to the phishing sites are in comments on YouTube or TikTok videos or in chats on Discord, the chat app for gamers.
The message might say there are free Robux available if a player clicks on the link provided. Like many scams, there will often be an element of urgency attached, such as the offer apparently only being valid for a few hours, to encourage the victim to act without fully thinking through the consequences.
From that link, the child will be taken to a fake sign-in page that will probably be identical to a legitimate Roblox site in appearance. The address will usually contain the name Roblox, for example “Roblox-verify” or “login-Roblox”.
A screengrab of a scam webpage targeting young Roblox users Photograph: ScreengrabWhen they are on the scam site, the child will be asked for their username and password but may also be told to put in two-factor identification codes, says NordVPN. But then the child is taken to the legitimate Roblox site so they can play their games as normal, leaving little indication that anything is amiss.
Once they have the login details, the fraudster may sell them on or use them to transfer Robux to another account.
What to doTalk to children about scams.
“One of the simplest habits is to encourage children to open Roblox directly through the official app or website rather than logging in through links they are sent,” says Marijus Briedis, chief technology officer at NordVPN.
“Two-factor authentication remains an important protection, but authentication codes and backup codes should be treated just like passwords and never handed over to somebody else.”
If your player has lost their Robux to a hacker, it seems unlikely that they will get it back. Roblox says that it is under “no obligation” to assist people whose accounts have been compromised, unless it is required to do so by law.
“Roblox does not guarantee that an individual’s account will be restored to its previous state, or that Roblox will be able to recover lost virtual items or virtual currency,” it says.
In “very limited circumstances”, Roblox says it may recover lost items or the value of them.
A spokesperson for Roblox says there are security measures in place to prevent phishing, such as two-factor authentication and a feature that stops criminals logging into your account from elsewhere.
“We continue to work on new ways to minimise the risk of account theft and actively encourage Roblox users to follow security best practices, including not clicking on links or downloading anything from unknown senders or websites,” the spokesperson adds.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of RBLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of RBLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Roblox Shares Rally After Management Maps Out Its Next Growth Push Summary
Roblox is expanding its platform with new distribution, creator and AI features as it seeks to reach more players and broaden its audience
Roblox RBLX shares jumped 5% Monday after executives detailed plans to broaden the gaming platform and pursue new audiences at its annual developer conference.
The company is working to let creators distribute their Roblox-made games as separate applications across phones, computers and consoles. Players are also expected to gain browser-based access, while Roblox is adding offline features and artificial intelligence tools to assist game development.
A major part of the strategy is reaching older users. New features are designed to support a wider variety of game styles, while a digital wallet and Roblox card could give creators additional ways to handle revenue generated from their content.
Bank of America analyst Omar Dessouky said the expanded game offering could help Roblox reach a portion of the mobile gaming market that remains less represented on the platform. The brokerage raised its price target to $48 from $44 while keeping a Neutral rating.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Buy Roblox (RBLX). Analyst upgrades cite real product progress: content discovery/search tweaks at RDC 2026 are improving “discovery velocity,” and engagement metrics are rebounding. The stock also reclaimed the 100-day moving average, and the $3B buyback creates steady demand that can keep dips shallow while Q3 bookings re-accelerate.
Key Risk: The algorithm changes fail to sustain engagement, so Q3 bookings disappoint and the stock loses the 100-day support despite buyback support.
RBLX momentum sell-into-rip
Sell/trim Roblox (RBLX) after the next sharp leg higher. The rally is being driven by upgrades plus short covering; when price runs ahead of fundamentals, the risk is a fast give-back. Use this as a tactical fade until Q3 confirms bookings strength and the stock stops overreacting to headlines.
Key Risk: Q3 bookings and engagement keep beating, forcing more short covering and pushing RBLX through resistance toward higher targets.
Roblox RBLX stock is ripping higher on September 14th on the back of bullish analyst notes and optimism around platform algorithm tweaks following developments at the recent RDC conference.
As investors cheered RBLX, it rallied past its 100-day moving average (MA) today, indicating the bullish momentum could actually sustain in the near-term.
The bullish Wall Street reports bring a much-needed reprieve to RBLX shares, which have tanked roughly 35% versus the start of this year (2026).
Analysts at both Wedbush and Bank of America Securities raised their price targets on RBLX stock to $48 this morning – pointing to management’s refined content discovery philosophy unveiled at RDC 2026.
According to them, the firm’s search and recommendation algorithm updates – which previously choked growth for viral experiences – are being adjusted to better personalize content delivery.
The surge in popularity of games like “Steal an Egg” serves as evidence that discovery velocity is recovering, they added.
Following the year-to-date decline, RBLX shares are trading at a price-to-sales (P/S) ratio of about 6x – which Wedbush and BofA analysts dubbed a significant discount to their historical valuation multiples.
That said, Roblox does not currently pay a dividend to attract income-focused investors as well.
Wall Street analysts issued a bullish note on Roblox shares today also due to the expected upside in Q3 bookings.
Third-party platform tracking data (including metrics from RoMonitor) indicates that average peak concurrent users and engagement hours have rebounded strongly after July’s post-earnings drop.
This resurgence suggests that developer activity and player monetization are re-accelerating ahead of the crucial holiday quarter.
With daily active users (DAUs) stabilizing and international adoption picking up pace, institutional investors are growing increasingly confident that the company can outpace conservative consensus estimates when it reports third-quarter financial results.
Note that this latest upward move builds on a robust multi-week rally as Roblox continues to climb out of its multi-month lows following a brutal late-July post-earnings sell-off.
Heavy short covering has played a key role in squeezing the stock higher as sellers rush to exit bearish positions amid improving market sentiment.
Further underpinning this technical recovery is the strong structural support provided by the firm’s massive $3 billion share buyback authorization.
This capital return plan not only signals strong executive confidence in RBLX shares’ long-term enterprise value, but also provides continuous buying pressure that has effectively put a floor under the stock and sustained its upward momentum.
Investors should note that Wedbush and BofA remain among the more conservative Wall Street firms on Roblox.
The consensus rating on RBLX sits at Overweight, according to The Wall Street Journal, with price targets going as high as $65, indicating potential upside of another 30% from here.
Roblox is expanding its AI-powered creation tools with Roblox Build, designed to let users create games directly from its mobile app. CEO David Baszucki says AI will lead to more creators, not fewer, as tools for generating code, 3D scenes, and avatars make game development more accessible.
Wedbush raised its price target on Roblox but kept a neutral rating, and the stock immediately shot above that new target. Find out what the analyst said, what Roblox unveiled at its developer conference, and why the risk-reward equation still…
Roblox (NYSE:RBLX | RBLX Price Prediction) stock is surging midday Monday after a Wall Street price target raise from an analyst who still won’t recommend buying the name. Roblox shares are up 10% to $49.96, a striking single-day move for a name that entered the session down 38% year to date.
The action reads as a single-name story rather than a sector rally. The VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) is only up 0.8%, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.4%. Roblox stock is climbing far more than the gaming basket, and it is doing so as the broad market slides.
Roblox has been a rough hold this year, and the year-to-date drawdown gives today’s pop room to run without changing the longer-term picture. The gap between where Roblox stock started 2026 and where it trades now is the frame every buyer is grappling with, since it dictates whether today’s rally is a rerating or a bounce off a low base.
Wedbush Lifts Target While Staying Sidelined In a Monday morning client note, Alicia Reese of Wedbush Securities raised her twelve-month price target on Roblox to $48 and kept a neutral rating on the stock. Reese wrote that the tools Roblox announced at its developer conference could accelerate growth, but that the company has yet to show how it converts engagement into money.
Reese stated, “We need more evidence on the monetization side, and specifically on the timeline for these initiatives to show up in bookings, before turning more constructive.” She added that with comparisons getting harder into a monetization air pocket, rising investment spending, and low visibility, the risk-reward keeps Wedbush sidelined on Roblox.
Roblox Everywhere and Roblox Wallet Framed the Weekend Roblox held its annual developer conference in San Jose on Friday, and the marquee unveil was Roblox Everywhere, which lets creators distribute their games as standalone apps across mobile, personal computers and consoles. It also lets players start a game in a browser and continue a session without connectivity, a piece meant to widen the reach of user-generated experiences beyond the core app.
The company previewed Roblox Wallet, which will roll out later this year and pay developers every business day rather than making them request conversion of the platform’s virtual currency. A companion Roblox Card will let developers spend outside the platform, and a build feature generates games from written text prompts. Roblox did not refresh its guidance at the conference, so investors are still working off a July outlook that projected third-quarter bookings reflecting an annual decline of 14% to 18%.
Gaming Peers Nudge Higher but Don’t Read Across Take-Two (NASDAQ:TTWO) stock is up 1% to $218.38, and GameStop (NYSE:GME) stock is rising 1% to $21.42. Both are tracking the ESPO gaming ETF rather than Roblox, which reinforces the read that today’s move is idiosyncratic to one platform.
Nothing in the Wedbush note or the conference announcements reads across to a traditional publisher like Take-Two or a games retailer like GameStop. Roblox Everywhere and Roblox Wallet concern how one platform distributes and monetizes user-generated content, so peers aren’t drafting on the same catalyst that lifted Roblox this session.
What to Watch The bull case for Roblox is that Friday’s conference went straight at the two complaints bears have leaned on, since Roblox Everywhere pushes games beyond the app and Roblox Wallet pays creators daily instead of making them wait. The bear case is that Wedbush raised its target while holding a neutral rating precisely because none of it has reached bookings yet, and Roblox stock is already trading above the new $48 figure, according to Wedbush Securities.
Roblox also carries a heavier overhang than a typical rerating candidate, with a Senate inquiry opened in August, lawsuits or settlements involving around ten states, and a European Commission determination that placed the platform under the bloc’s strictest digital services rules. Investors can watch for whether the developer-conference narrative starts to show up in bookings, and whether other analysts follow Wedbush’s target higher without matching its neutral stance. Position sizing in Roblox shares should respect that today’s gain leaves the stock above the highest visible target on the note that sparked it.
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Why These Three Big Buybacks Are Sending Very Different Signals to InvestorsRoblox NYSE: RBLX outlined a broad set of planned platform, Studio, avatar and engine updates at its developer conference, emphasizing AI-assisted creation, collaborative workflows, testing tools, improved game fidelity and new infrastructure for competitive and offline games.
The company said package overrides are scheduled to arrive later this year, allowing developers to publish updates to packages while maintaining local changes on individual instances. Roblox also announced that native branch-and-merge workflows are planned for Roblox Studio, with an early release targeted for next year. The tools will allow creators to work on separate branches, review changes and conflicts in Studio, and merge work back into a main branch. Roblox said the functionality will be backed by APIs for use in agentic workflows.
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AI Tools and Studio Testing MarketBeat Week in Review – 05/04 - 05/08Roblox demonstrated Studio tools intended to speed up 3D creation. The company showed a workflow in which developers can generate a segmented 3D mesh from a text prompt, then use another prompt to add behavior, such as making windmill blades spin. It also discussed texture-generation tools that can update textures across multiple mesh parts, including support for 4K physically based rendering, or PBR, texture generation.
For terrain creation, Roblox highlighted custom terrain materials, native terrain paths and projected decals. Developers can create up to 64 unique terrain materials per game, according to the presentation. Terrain paths will allow creators to draw splines that modify terrain to create roads and other routes, while projected decals will add images and visual details to terrain surfaces.
Roblox Stock Slides to New Low as Safety Changes Weigh on OutlookThe company also previewed expanded testing capabilities in Studio. Upcoming tools will enable simultaneous client and server views in a single testing session, let developers add and independently control multiple clients without restarting Studio, and support direct real-device connections to Team Test. Roblox said remote debugging for connected devices is planned for an early preview later this year, while testing teleports directly in Studio is expected early next year.
Avatar Scalability and Creation Robert Melly, senior director of product at Roblox, said the company is investing in technology designed to support worlds with larger numbers of characters. Roblox’s Character Controller Library, a Luau-based replacement for the humanoid system, shipped in April, with version two released during the event and a third version planned by year-end. Melly said the system can reduce unnecessary simulation work for distant or inactive characters.
Roblox also discussed extending its SLIM technology to non-player characters. The company said SLIM, which uses lightweight proxy representations, reduced the number of displayed triangles by 93% and memory use by 60% in a simulated scene. Planned upgrades include support for NPCs and automatic regeneration of SLIM representations when an avatar changes equipped items.
Shiu Pei Luu, senior manager of product design, said Roblox is modularizing Avatar Auto Setup into backend services, preserving Studio access while enabling API-based integrations and manual overrides. The company also plans to release Prompt to Avatar by the end of the year. The tool is intended to generate compliant avatar meshes, dynamic R15-plus rigs, layered clothing and modesty layers from concepts and prompts.
Roblox said 1.7 million items have been created through in-experience creation since that capability was released last year. Separately, Oren Jacob, senior director of engineering, highlighted planned animation and rendering enhancements, including twist bones, multi-character animation timelines, motion generation from prompts or videos, AI-assisted animation upscaling, improved clothing behavior, and object interactions for avatars. Emissive support for eligible user-generated avatar items is already live in the marketplace, he said.
Game Infrastructure, Safety and Offline Play On the engine side, Roblox said native persistence for in-game content is coming soon. The feature will allow developers to persist arbitrary models, images and meshes created inside games, producing asset IDs scoped to the relevant game.
The company also plans a safety callback API. Josh Anon, senior director of product, said Roblox has automatically shut down more than 1.8 million servers after detecting policy-violating content. The new API is intended to give creators an opportunity to remove problematic content or players before a server is shut down.
For competitive games, Roblox plans to introduce a device-integrity API that uses hardware-level security signals to indicate whether a device can be trusted. Taylor Russ, senior director of engineering, said an experiment with Roblox Rivals that blocked low-integrity Android devices reduced cheating prevalence by 97% on Android. Initial support is planned for Android and the web player, followed by other platforms.
The company is also targeting early access next year for queue services and cloud-based compute functions that can support queue-based matchmaking and other systems, such as global auction houses. Roblox said it is developing offline play capabilities, including downloadable games and assets, local gameplay servers and cloud-based backend servers for functions such as purchases. A new Player Data Store, targeted for early access by year-end, is intended to handle transaction management, session locking, schemas, privacy requests and offline player-data workflows.
Engine Fidelity and Terrain Improvements Roblox said it will begin releasing new primitive shapes later this year, including cones, capsules, discs and rounded versions of primitives. The company also highlighted mesh streaming, texture streaming and cloud-generated levels of detail as tools that can help developers increase asset fidelity while managing memory budgets.
George ElKoura, senior director of engineering, said Roblox is increasing the engine’s minimum draw distance to 500 studs from 200 studs on low-end devices. The rollout has begun, he said.
Planned terrain improvements include virtual textures, signed distance fields and a customizable scattering system for objects such as rocks and trees. Roblox also expects to make a new collision-generation approach available in the coming weeks, using a Voronoi-based convex decomposition algorithm and more granular Studio controls. Additional material improvements, including enhanced shading for surfaces such as skin, car paint and fabrics, are targeted for early access by year-end, alongside a material-layering system.
About Roblox (NYSE:RBLX)Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.
Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.
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In the latest close session, Roblox (RBLX - Free Report) was up +1.38% at $45.50. The stock outperformed the S&P 500, which registered a daily gain of 0.86%. On the other hand, the Dow registered a gain of 0.98%, and the technology-centric Nasdaq increased by 0.96%.
Prior to today's trading, shares of the online gaming platform had gained 18.26% outpaced the Consumer Discretionary sector's loss of 5.09% and the S&P 500's loss of 1.96%.
Investors will be eagerly watching for the performance of Roblox in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.41, marking a 10.81% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.62 billion, indicating a 15.85% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.55 per share and a revenue of $6.88 billion, indicating changes of -0.65% and +1.32%, respectively, from the former year.
Any recent changes to analyst estimates for Roblox should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.36% lower within the past month. Right now, Roblox possesses a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
SAN MATEO, Calif.--(BUSINESS WIRE)--Roblox Corporation (NYSE: RBLX) today announced new innovations at its 12th annual Roblox Developers Conference (RDC), an invite-only event for Roblox's creator community of developers, artists, designers, brands, and influencers. Celebrating 20 years of platform innovation alongside its community, the company unveiled updates that aim to expand play, give creators the game engine and AI tools to build things that weren't possible before, and usher in the nex.
Roblox (RBLX.N) plans to let creators distribute their games as standalone apps across mobile, PC and consoles, the company said at its developers conference on Friday, as it seeks to make games easier to access beyond the Roblox app.
The gaming platform will provide the underlying technology and services for the standalone apps. By the end of the year, players will also be able to join games in Chrome from a game's Experience Details page without downloading an app, with additional browsers to follow.
Roblox will also allow creators to combine online and offline modes in one game, enabling single-player campaigns and play without a network connection.
The company is also expanding its AI tools for game creation, including Build, Scene Generator and new non-player character features.
Roblox introduced Build in July, allowing users to create, test and publish a playable game from a text prompt within its app. The company said users have published about 9,000 games with Build, and 71% of those who created a game with the tool had not previously used Roblox Studio.
Scene Generator, due later this year, will let creators use a text prompt and reference image to create a functional game layout. Roblox also plans to add non-player characters that can playtest games.
At its annual Roblox Developer Conference (RDC), the company behind the popular gaming platform announced several new features, including new game-creation tools, expanded NPC (non-player character) capabilities, and the ability to make games available across platforms, including the web. The company is also launching a dedicated Roblox Card and Roblox Wallet for creators.
Chief Legal Officer & Corp. Sec. Mark Reinstra sold 5,773 shares of Class A Common Stock of Roblox Corporation (RBLX +0.56%) on September 8, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$258,630Shares sold (directly held)5,773Post-transaction shares (directly held)392,291Post-transaction shares (indirectly held)220,654Post-transaction value$27.5 millionTransaction value based on SEC Form 4 weighted average sale price ($44.80); post-transaction value based on Sept. 08, 2026, market close ($44.82).
Key questionsWhat was the structural nature of this Class A Common Stock disposal?
The transaction was non-discretionary and executed pursuant to a Rule 10b5-1 trading plan established by Mark Reinstra on February 19, 2026, to facilitate planned equity liquidity.Through which entities are the insider's indirect shares managed?
The ~221,000 shares held indirectly are distributed across the San Domenico Trust, the Mark L. Reinstra 2023 and 2022 Annuity Trusts, and the Susan P. Reinstra 2023 and 2022 Annuity Trusts.What is the current equity position of the insider following this transaction?
Mark Reinstra continues to hold 392,291 shares directly, and when combined with indirect holdings across multiple trusts, the total equity stake is valued at $27.5 million as of the Sept. 8, 2026, market close.How does the execution price compare to recent company equity performance?
The shares were sold at $44.80 per share on a date when the company's one-year total return was -65% as of the Sept. 8, 2026, market close.Company OverviewMetricValueShare Price (as of market close 2026-09-09)$44.52Market Capitalization$31.8 billionRevenue (TTM)$5.7 billionNet Income (TTM)-$1.0 billionCompany SnapshotRoblox operates a comprehensive digital entertainment ecosystem featuring Roblox Studio, a free development platform that enables creators to build and monetize interactive 3D experiences, and the Roblox Client application, which provides users with access to these immersive virtual environments.The company generates revenue through a diversified model that includes user engagement on its platform, developer monetization programs, virtual currency transactions, and educational offerings through Roblox Education, which serves both institutional and individual learners.The platform serves a global audience spanning casual gamers, professional developers, educational institutions, and enterprise clients seeking to leverage 3D interactive content for engagement and learning purposes.Roblox Corporation operates one of the world's largest user-generated content platforms, with a market capitalization of $31.8 billion and TTM revenue of $5.7 billion. The company's competitive advantage derives from its accessible development tools, expansive creator ecosystem, and cross-platform accessibility, positioning it as a significant player in the digital entertainment and metaverse infrastructure sectors. Despite current profitability challenges reflected in TTM net losses, Roblox maintains substantial scale and platform engagement metrics that underscore its strategic importance in interactive digital entertainment.
What this transaction means for investorsAs suggested above, Mark Reinstra's sale of Roblox stock looks more like a portfolio management decision unrelated to his view on the company or its stock.
Investors should keep in mind that Reinstra structured the transaction under the Rule 10b5-1 framework, scheduling the sale for February. Thus, it was a pre-planned sale that avoided the appearance of acting on insider information.
As previously mentioned, he sold only about 1% of his holdings, and he seems to be holding firm with the other 99% amid significant headwinds.
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Its young demographic is often growing out of the platform even as it adopts stricter safety guidelines to protect children. Consequently, its once rapid revenue growth appears to be slowing to a crawl. Analysts forecast just 1% revenue growth for 2026, though they expect it to rebound to a 12% increase the next year.
Fortunately, its struggles have reduced its price-to-sales (P/S) ratio to 5.5. Such a low valuation may prompt insiders like Reinstra to hold fast in Roblox and possibly buy more as the entertainment stock works through its recent challenges.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roblox. The Motley Fool has a disclosure policy.
Roblox cratered while its closest gaming peers held up far better, but before you rush to rotate, check whether any corner of this sector actually rewarded investors when the broad market was busy setting records.
Gregory Baszucki, a member of the Board of Directors at Roblox Corporation (RBLX +0.73%), executed a sale of 16,666 shares of Class A Common Stock on September 1, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$674,000Shares sold (indirectly held)16,666Post-transaction shares (total)~11.9 millionPost-transaction shares (directly held)3,889Post-transaction shares (indirectly held)~11.9 millionPost-transaction value$485.96 millionTransaction value based on SEC Form 4 weighted average sale price ($40.47); post-transaction value based on September 1, 2026 market close ($40.67).
Key questionsHow does the director's total equity position compare to the reported transaction?
Following the disposition of 16,666 shares, Gregory Baszucki maintains a substantial equity position of ~11.9 million shares, meaning the recent sale impacted less than 1% of his total reported stake.What specific entities hold the remaining indirect shares?
The insider's indirect holdings are distributed across several vehicles, including the Greg and Christina Baszucki Living Trust, a Roth IRA, the Morningstar Dynasty Trust, and the Crossbow Dynasty Trust.Are there other forms of equity compensation associated with the director?
Gregory Baszucki also holds derivative securities in the form of restricted stock units, with each unit representing a contingent right to receive one share of Class A Common Stock.What is the current financial context of the company?
Roblox Corporation reported trailing twelve-month revenue of $5.7 billion and a net income of -$1 billion as of the most recent reporting period, while the stock has seen a -67% one-year return as of the September 1, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-09-01)$40.67Market Capitalization$29.2 billionRevenue (TTM)$5.7 billionNet Income (TTM)-$1.0 billionCompany SnapshotRoblox Corporation operates a comprehensive digital entertainment ecosystem centered on Roblox Studio, a free suite of development tools enabling creators to build, deploy, and manage interactive 3D environments, with users accessing these experiences through the Roblox Client application.The company generates revenue through a dual-monetization model leveraging user engagement on its platform, including in-app purchases, developer exchange programs, and premium subscription offerings that create value across both creators and consumers.The platform serves a diverse user base spanning casual gamers, professional developers, educational institutions, and enterprises, with particular strength in attracting younger demographics while expanding into enterprise and educational verticals through Roblox Education.Roblox Corporation operates one of the world's largest user-generated content platforms, with a trailing 12-month revenue base of $5.7 billion reflecting substantial scale in the digital entertainment sector. The company's competitive differentiation stems from its accessible development tools, expansive creator ecosystem, and cross-platform accessibility, positioning it as a significant player in the metaverse and interactive entertainment space.
Despite current profitability headwinds reflected in trailing 12-month net losses, the platform's user engagement metrics and developer network represent substantial strategic assets in the evolving digital entertainment landscape.
What this transaction means for investorsDirector Gregory Baszucki's September 1 sale of Roblox stock occurred after shares had fallen a whopping 67% over the trailing 12 months. However, the disposition was executed as part of a pre-established Rule 10b5-1 plan adopted on November 28, 2025, making this a non-discretionary transaction.
Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information. Therefore, Baszucki's sale does not suggest a bearish outlook toward Roblox. Given he retains nearly 12 million shares post-transaction, his massive equity stake ensures his continued alignment with shareholder interests.
Roblox's stock is down because the company's second quarter earnings report suggests tough times ahead. Management provided weak bookings guidance for Q3 that points to as much as an 18% year-over-year drop. A lack of a full-year revenue outlook also cast a cloud over the stock.
Algorithm changes affected the kinds of video games the Roblox platform recommended to users, reducing revenue opportunities in the short term, but the company believes the changes will pay off over the long run. Roblox also implemented stricter child safety tools, which hurt results in the near term yet were necessary to protect younger users.
SAN MATEO, Calif.--(BUSINESS WIRE)--Roblox Corporation (NYSE: RBLX) today shared its 2025 Economic Impact Reports covering the U.S., Australia, Mexico, the European Union (EU), and the Middle East and North Africa (MENA) region. The reports highlight how Roblox powers a robust creator economy where people have the opportunity to earn real income from the games and items they create.The U.S. report, conducted by Nordicity, a leading economic analysis firm, found that in 2025 alone, Roblox creator.
