RBLX
Roblox just got a colder shoulder
TD Cowen came in and chopped its Roblox price target to $54 from $70, while sticking with a Sell rating. The message is pretty blunt: engagement trends aren’t looking strong enough, and that could make the company’s next guidance update a real make-or-break moment for the stock.
The part investors care about
The firm also trimmed its fiscal 2026 bookings estimate to $7.75 billion from $7.91 billion, which now sits below the bottom of management’s guidance range. It cut EBITDA too, to $1.79 billion from $1.83 billion. Translation: if Roblox misses the next step on the growth ladder, the market may not be in a forgiving mood.
Why this matters now
This isn’t just about one bearish note from one bank. The stock is already bruised — down 57% over the past six months and 29% year to date — so every analyst downgrade lands a little harder. When a name is trading like it’s under pressure, investors start obsessing over whether the next update is a lifeline or another faceplant.
The broader Roblox tape
TD Cowen isn’t alone in getting more cautious. Wells Fargo also lowered its target, citing worries that second-quarter bookings and EBITDA could come in below expectations. Meanwhile, Roblox is still rolling out new products like age-based accounts and a subscription service, so the company is clearly trying to add more levers than just raw user engagement.
Big picture: Roblox still has the ingredients of a hit platform, but Wall Street is basically asking, “Cool — can you prove the monetization keeps up?”