Roblox is trading 27% down at $35.54 after issuing a weak Q3 outlook and warning that free cash flow could turn negative.
- Management expects Q3 bookings to fall 14%–18% year-over-year, citing algorithm changes that have negatively impacted platform monetization.
- Analysts highlighted weaker spending trends among younger users, reinforcing concerns that recent platform updates are creating significant growth headwinds.
- The selloff is company-specific and follows the July 30 earnings update and guidance reset, as investors react to the pressure on monetization.