Movement Alert|Roblox Corporation Falls 5.79% in Regular Trading, Jefferies Downgrades to Underperform With $38 Target

Market Focus
Sep 28

On September 28, Roblox Corporation fell 5.79% in regular trading, trading at $44.07 per share, with turnover of $31.28 million.

On the news front, Jefferies downgraded Roblox Corporation from Hold to Underperform and set a price target of $38, well below the analyst consensus target of $49.34, signaling deep concerns over the company's growth momentum and competitive positioning. The downgrade marks one of the most bearish calls on the street, where the average analyst rating remains Overweight.

Adding to the headwinds, Meta unveiled AI-powered game creation tools — Horizon Create and Horizon Studio — at its annual Connect conference on September 25, enabling users to generate full 2D/3D games via text prompts for distribution across Facebook and Instagram. These tools directly target Roblox Corporation's core user-generated content ecosystem, threatening its creator economy model. Roblox Corporation had already declined over 5% on that day. Meanwhile, major institutional holder ValueAct Holdings previously disclosed a 46.2% reduction in its Roblox stake to approximately 3.1 million Class A shares, further reflecting waning institutional conviction.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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