Piper Sandler Views Recent Roblox (RBLX) Selloff as Exaggerated

Core Viewpoint - Piper Sandler considers the recent selloff of Roblox Corporation (NYSE:RBLX) as exaggerated, attributing it to broader software market weakness and end-of-January ETC purges, while highlighting the company's discounted valuation ahead of upcoming earnings [1]. Group 1: Market Analysis - Gaming stocks, including Roblox, experienced volatility, with Piper Sandler noting that the selloff on January 30, 2026, was influenced by new AI capabilities and market conditions [1]. - Wedbush lowered its price target for Roblox from $165 to $110 but maintained an 'Outperform' rating, citing strong engagement metrics despite challenges [2]. Group 2: Financial Projections - Wedbush adjusted its FY26 estimates for Roblox, reducing Bookings growth from 24% to 18% and EBITDA margin from 23% to 21%, indicating potential guidance below market expectations for the fourth quarter [2]. Group 3: Company Overview - Roblox Corporation provides online gaming services through its Roblox Client, Studio, and Cloud, allowing users and developers to create and engage in immersive 3D experiences on its platform [3].