Roblox Corporation (NYSE:RBLX) faced fresh scrutiny in Europe after a Dutch watchdog opened a probe into how the platform protects minors.The development comes as the stock traded lower and an analyst trimmed a price target while keeping a bullish rating.Wedbush analyst Alicia Reese maintains an Outperform rating on the stock, lowering the price forecast from $165 to $110.The gaming platform drew scrutiny Friday as the Netherlands Authority for Consumers and Markets launched an official review of its protec ...

Group 1 - The Netherlands' consumer protection regulator ACM has initiated an investigation into the U.S. gaming platform Roblox [1] - The investigation focuses on potential risks to underage users within the European Union [1]

Roblox Corporation (NYSE:RBLX) is among the Growth Stock Portfolio: 12 Stock Picks By Cathie Wood. JPMorgan Describes Roblox Corporation (RBLX)'s Stabilization of Engagement Trends as "Encouraging" On January 20, 2026, TheFly reported that JPMorgan claimed Roblox Corporation (NYSE:RBLX) engagement statistics stabilized over the weekend, marking the first week in recent memory where year-on-year growth did not moderate. The company noted that the development aligned with the global implementation of age v ...

Group 1 - Roblox Corp (NYSE:RBLX) is considered one of the best large-cap stocks under $100 with significant upside potential, with a Buy rating maintained by B. Riley Securities and a price target of $125, indicating an estimated 69% upside potential prior to the fourth quarter results announcement on February 5 [1] - Oppenheimer reaffirmed its Outperform rating on Roblox Corp with a price target of $150, following the implementation of an age verification process, which has reportedly had no material impact on monetization or player time for top Roblox games [3] - The company is expected to post healthy yet decelerating growth in bookings, with margins under pressure due to large investments, and strong first-quarter results in 2026 are anticipated, driven by the launch of the game Escape Tsunami for Brainrots! [2] Group 2 - Roblox Corporation operates as a virtual communication and connection platform, providing a highly immersive digital experience through offerings such as Roblox Client, Roblox Studio, and Roblox Cloud, enabling users and developers to connect, work, play, and socialize in a 3D environment [4]

Company Overview - Roblox has a market capitalization exceeding $52 billion, making it one of the largest video game stocks, surpassing Electronic Arts by $1 billion and Take-Two Interactive by $7.5 billion [2] - The company is positioned as a leader in the future of gaming, shifting from traditional console games to a platform that allows users to create and play games online [3] Revenue Generation - Roblox generates revenue through multiple streams: sales of its virtual currency Robux, fees from game builders, and advertising revenue from companies targeting the gaming audience on its platform [4] - The company reported $4.5 billion in sales over the last year and generated $1.2 billion in free cash flow, being free cash flow positive in four of the last five years [5] Financial Performance - Despite reporting significant losses of $1.2 billion in 2023 and projected losses of over $900 million in both 2022 and 2024, the company is still viewed as a potential investment opportunity for long-term gains [1] - The current financial outlook suggests that while Roblox is not yet profitable, its business model and revenue streams could lead to substantial future returns for investors [5]

CANADA - 2025/10/04: In this photo illustration, the Roblox Corporation logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesRoblox (RBLX) – a platform for creating and managing 3D online experiences – has experienced a 5-day losing streak, with total losses during this time reaching -15%. The company's market capitalization has plummeted by approximately $9.3 billion in the last 5 days, and now s ...

Core Viewpoint - Roblox (RBLX) has experienced a downtrend, losing 15.2% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with selling pressure likely subsiding, which could lead to a bullish trend for the stock [2][5]. - A hammer pattern forms when there is a small difference between opening and closing prices, with a long lower wick, suggesting that bears may be losing control [4][5]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [5]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for Roblox, which supports the bullish case for the stock [2][7]. - The consensus EPS estimate for the current year has increased by 6.1% over the last 30 days, indicating analysts' agreement on the company's potential for better earnings [8]. - Roblox holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10]. Conclusion - The combination of the hammer chart pattern and positive earnings estimate revisions suggests a potential turnaround for Roblox, supported by technical and fundamental indicators [1][2][7].

Core Viewpoint - JPMorgan maintains a Neutral rating and a $100 price target on Roblox, citing a decline in recent engagement metrics [1] Engagement Metrics - Roblox's peak concurrent users decreased to 23 million over the past weekend, down from 26 million the previous week, marking the lowest Saturday peak since early June [2] - The game Escape Tsunami reached approximately 5 million concurrent users, but its growth was overshadowed by a decline of about 3 million concurrent users for Steal a Brainrot, despite the recent success of Plants vs. Brainrots [2] External Factors - JPMorgan indicated that Winter Storm Fern likely did not significantly impact the engagement data, as increased engagement from children staying home was countered by power outages affecting over 200,000 households on Saturday and up to 750,000 by Sunday morning [3] Weekday Trends - Weekday engagement trends appeared more stable, with non-peak usage remaining largely unchanged week over week, even after accounting for the Martin Luther King Jr. holiday [4] - A slower weekend event calendar may have contributed more to the engagement decline than changes in age verification, with overall engagement results being disappointing and year-over-year trends moderating again after showing signs of stabilization the previous week [4]

Voya Investment Management’s Voya MidCap Opportunities Fund released its Q4 2025 investor letter, titled “Seeking a More Favorable Risk/Return Trade-off”, outlining a quarter marked by solid market gains but relative fund underperformance. A copy of the letter can be downloaded here. During the quarter, the Fund underperformed its benchmark, the Russell Mid Cap Growth Index, primarily due to unfavorable stock selection, even as U.S. equity markets advanced on moderating inflation, robust earnings, and conti ...

Core Insights - Roblox has shown a strong rebound in 2025 with user growth reaccelerating, engagement reaching new highs, and an expanded monetization toolkit, but this reset does not equate to resolving its core issues [1][2] Profitability Challenges - Roblox remains unprofitable, with estimated losses reaching $1.1 billion in 2025 due to high infrastructure costs, trust and safety spending, and developer payouts that scale with platform success [3][4] - The company's business model prioritizes growth over short-term financial gains, leading to a situation where operating leverage is more theoretical than actual [4][5] - Although Roblox generates significant free cash flow, profitability is still an expectation rather than a reality until revenue growth consistently outpaces total costs [5] Advertising Potential - Advertising is seen as a crucial monetization opportunity, with progress made in 2025 through immersive ad formats and integration with Google Ad Manager, but it remains in its infancy [6][7] - The scalability of ads without compromising user experience is yet to be proven, and regulatory constraints exist due to the platform's young audience [7][8] - While there is potential for significant upside in ad revenue, it is currently viewed as an optionality rather than a proven earnings engine [8] Creator Economy Dynamics - Roblox's creator ecosystem is a strength but also a financial constraint, with creators earning over $1 billion in just nine months of 2025 [9][10] - Developer payouts have not significantly decreased as a percentage of bookings, limiting margin expansion and creating a tension between supporting creators and achieving profitability [10][11] Investment Outlook - Despite real progress in growth and monetization options in 2025, Roblox has not resolved its most challenging issues, including profitability and advertising scalability [12] - Investing in Roblox requires patience and conviction, as the company remains a high-potential platform with unresolved challenges that could impact returns [13]