Stock Track | Roblox Shares Plummet 5.01% Intraday After JPMorgan Downgrade on Engagement and Margin Concerns

Stock Track12-13 00:12

Roblox Corporation (RBLX) saw its shares drop sharply by 5.01% during Friday's intraday trading session following a downgrade by JPMorgan from Overweight to Neutral.

The downgrade was driven by concerns over potential engagement headwinds, slowing bookings growth, and margin compression in 2026. JPMorgan analysts highlighted risks such as the rollout of facial age estimation in January and a ban in Russia, which could further dampen user engagement. Additionally, higher developer expenses are expected to pressure margins, with the analysts noting that Roblox may struggle to grow its way out of margin compression next year.

The firm also cut its price target for Roblox to $100 from $145, citing limited upside unless new viral hits emerge or advertising ramps significantly—a scenario the analysts are not anticipating.

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