Roblox is under legal pressure following a new lawsuit alleging child exploitation and inadequate safety protections for minors, coinciding with an ongoing investigation into potential securities law breaches.
- BTIG lowered its price target significantly from $174 to $141 (maintaining a Buy rating) citing bifurcating engagement and monetization headwinds ahead of the February 5 earnings report.
- Other firms followed suit, with Piper Sandler cutting its target to $125 and TD Cowen reiterating a Sell rating with a $70 target, citing parental restrictions and engagement slowdowns.
- Despite the negative news flow and analyst cuts, the stock is trading higher intraday at $75.31, marking a gain of 4.40%.