Piper Sandler downgraded Roblox Corp. to Neutral from Overweight. The firm cut its price target for the stock from $100 to $50.
The downgrade follows Roblox's first-quarter earnings announcement. Management substantially lowered its full-year 2026 adjusted revenue guidance during the report.
The revised outlook stems from the delayed rollout of new age-gating and verification systems. These safety-focused updates impacted user communication features, which drive platform engagement and spending.
Roblox characterized these disruptions as short-term bookings headwinds. Shares traded lower on Tuesday as investors assessed the potential duration of these growth obstacles.