Deutsche Bank downgrades Roblox after first-ever bookings decline forecast

Analyst Impact 4
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Summary · why it matters

Deutsche Bank downgraded Roblox to Hold from Buy and slashed its price target to $38 from $56 after the company forecast its first year-over-year bookings decline. Roblox shares fell nearly 27% on July 31, their worst single-day drop on record, wiping out about $9 billion in market value. The company projected third-quarter bookings of $1.58 billion to $1.65 billion, a drop of 14% to 18%, and withdrew its full-year 2026 outlook entirely. Analyst Benjamin Black said the quarter materially reduces near-term visibility, noting second-quarter bookings of $1.557 billion came in about 3% below expectations. The slowdown stems from an April algorithm change that prioritizes long-term retention over fast-spending viral hits, along with tighter age checks that slowed new sign-ups.

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