Jefferies downgraded Roblox to "underperform" from "hold," citing concerns that the recent 30% rally was overly optimistic about bookings growth in the next 12 months. The broker cut its 2026 and 2027 bookings and EBITDA forecasts, expecting slower user growth in the US and Canada due to a shift in Roblox's algorithm favoring long-term retention over viral hits. Despite positive views on attracting older audiences and new genres, Jefferies sees no EBITDA margin expansion until 2028 amid increased spending on AI infrastructure and platform diversification. Roblox shares dropped about 8% following the downgrade.
Roblox shares fell sharply following the downgrade, with the stock down 7.84% to USD 42.80 on Pluang as of Sep 29, 2026 02:32 WIB. The market cap stands at $33.18 billion, reflecting significant investor interest despite recent concerns. Trading volume reached over 11 million shares, indicating active participation amid the stock's volatility.
