From NASDAQ: 2025-02-15 08:47:00

Roblox (NYSE: RBLX) saw much of its 2025 gains wiped out after its latest earnings report, with shares dropping over 11% in one day. Despite better-than-expected bottom-line performance and solid growth in bookings, a significant decline in daily active users raised concerns about future revenue growth.

Analysts attribute the drop in users to new parental control features implemented by Roblox in late 2024, affecting primarily younger users. While the decline in daily active users is notable, it’s unclear whether it’s a temporary setback or a more enduring issue. The impact of these features on user engagement will be closely monitored in upcoming quarters.

Following the earnings report, only one analyst lowered their price target for Roblox, with others either raising or reiterating theirs. Despite strong growth compared to industry competitors, Roblox’s forward price-to-sales ratio remains high, signaling a potentially lofty valuation. Waiting for further recovery and insights into user trends may be prudent before making investment decisions.



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