RBLX Stock Crashes 24% Pre-Market: Analysts Warn Of ‘Credibility Reset’

• The company lowered its full-year 2026 bookings to $7.33 billion - $7.6 billion, down from its previous outlook of $8.28 billion to $8.55 billion.
• Raymond James downgraded Roblox to ‘Market Perform’ from ‘Outperform’, without a price target, according to The Fly.
• The brokerage said recent safety and discovery changes are having a bigger impact than expected.

Shares of Roblox Corp. (RBLX) came under heavy selling pressure in pre-market trading on Friday, plunging more than 24%, following a wave of bearish analyst actions after the company’s annual bookings forecast revision took a toll on investor sentiment.  

If the pre-market levels hold after the opening bell, RBLX shares would trade at their lowest levels since October 2024.

Roblox’s first-quarter (Q1) revenue of $1.44 billion fell well short of Wall Street’s estimates of $1.74 billion, according to Fiscal.ai data. However, its loss of $0.35 per share was narrower than the consensus estimate of $0.41 per share.

However, analysts expressed concerns on a near-term basis after the company lowered its full-year 2026 (FY26) bookings to $7.33 billion - $7.6 billion, down from its previous outlook of $8.28 billion to $8.55 billion.

Raymond James Expects Near-Term Challenges To Prevail

Raymond James downgraded Roblox to ‘Market Perform’ from ‘Outperform’, without a price target, according to The Fly. The firm cited growing near-term pressure on user engagement and growth following the company’s recent guidance reset.

The brokerage said recent safety and discovery changes are having a bigger impact than expected, and the rollout of age verification has reduced chat activity and user interaction, and slowed new-user and content growth. At the same time, updates to the discovery algorithm appear to have leaned too heavily toward monetization, potentially hurting overall platform health.

Raymond James noted that only about 51% of users are currently age-verified, well below the company’s 90% target, and with more safety measures still to come, it expects these challenges to continue in the near term.

“Roblox now needs to restore credibility and demonstrate that engagement can stabilize before shares become more compelling,” the note read.

Meanwhile, Barclays lowered its price target significantly to $60 from $115 and maintained an ‘Equal Weight’ rating following the earnings report. The company’s “top of funnel growth seems to have hit the wall” following the age verification rollouts, the brokerage said.

How Did Retail Traders React?

Despite the sharp pre-market sell-off, retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier. Message volumes on the platform soared nearly 1,600% over a 24-hour period.

However, chatter was mixed. One user urged buying the dip, adding the stock could climb to $45 by the time the market opens.

Another user expects the stock to drop to $33, around 20% below the current level.

The stock has declined nearly 32% so far in 2026.

Read also: Why Is SHPH Stock Soaring Today? Dogecoin Mining Pivot Sparks Rally

For updates and corrections, email newsroom[at]stocktwits[dot]com.