Wolfe Research Cuts Roblox (RBLX) PT to $100 While Citing AI and New Products as 2026 Growth Drivers

Core Viewpoint - Roblox Corporation (NYSE:RBLX) is viewed as a promising stock by Wall Street, but recent price target adjustments indicate a more cautious outlook for 2026 due to stretched valuations and potential moderation in engagement trends [1][2][3]. Group 1: Price Target Adjustments - Wolfe Research lowered its price target for Roblox to $100 from $150 while maintaining an Outperform rating, citing AI developments and new product launches as potential growth drivers for 2026 [1]. - JPMorgan downgraded Roblox to Neutral from Overweight with a price target of $100, down from $145, noting a decline in engagement momentum and anticipated slowdown in bookings growth [2]. - Jefferies also reduced its price target for Roblox to $100 from $115, advising selectivity in Internet stocks and highlighting concerns over margin expansion due to increased investments [3]. Group 2: Engagement and Growth Outlook - Despite a significant surge in engagement during 2025, JPMorgan warns that this momentum is fading, which may lead to a moderation in engagement trends in 2026 [2]. - Wolfe Research suggests that while 2026 is expected to be profitable for Internet stocks, the outperformance may be more modest compared to the previous three years due to current valuation levels [1]. Group 3: Investment Considerations - The company operates an immersive platform for connection and communication both in the US and internationally, but there are concerns that certain AI stocks may offer greater upside potential with less downside risk [4].