Wall Street Firms Cautious on Roblox Corp. (RBLX) Amid Declining Engagement Levels

Roblox Corp (NYSE:RBLX) is one of the stocks with huge growth potential, according to the media. On January 27, Piper Sandler lowered its price target on Roblox Corp (NYSE:RBLX) to $125 from $180 while keeping an Overweight rating, citing weaker upside in billings and revenue growth beyond 2027 and recent data showing age-related restrictions impacting performance.

The firm expects Q4 2025 bookings growth of 55–60% year-over-year to about $2.11 billion, daily active users of 140 million (up 65%), and EBITDA of $544 million, though it trimmed FY2027 and FY2028 bookings estimates by 3% and 8%, respectively.

On January 26, JPMorgan reiterated a Neutral rating on Roblox Corp (NYSE:RBLX) and a $100 price target. The cautious outlook comes on the heels of the company reporting a decline in platform engagement.

The company has seen its peak concurrent users drop to 23 million, down from 26 million, marking the lowest level since early June of last year. The decline came despite concurrent users on popular game Escape Tsunami dropping to 5 million CCUs from 3-4 million previously.

Meanwhile, another popular game, “99 Nights in the Forest,” has maintained its steady peak CCU at 6 million, even as “Grow a Garden” declined to 433,000 from 464,000. JPMorgan has attributed the decline to slower weekend event activity, while weekday engagement trends remain strong. Year-over-year engagement levels have moderated to 71% compared to 74%.

Roblox Corp. (NYSE:RBLX) operates a popular online entertainment platform that enables users to create, share, and play 3D virtual experiences, functioning as a “metaverse” for social connection. It provides tools for developers to build games (Roblox Studio) and a primarily free-to-play app (Roblox Client) for accessing content.

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Disclosure: None. This article is originally published at Insider Monkey.