On May 1, Roblox Corporation fell 22.95% intraday, trading at $43.415/share, with trading volume of $348 million. The sharp selloff was triggered by the company's significant downward revision to its full-year bookings guidance and the adverse impact of newly introduced safety features on user engagement.
Roblox released its first-quarter earnings after market close on April 30, slashing its full-year bookings guidance to $7.33 billion–$7.6 billion, roughly 12% below the prior range of $8.28 billion–$8.55 billion. The company also projected a sequential decline in daily active users for the second quarter. Management attributed the downgrade primarily to age-based communication restrictions and other safety measures rolled out since January, which led to reduced user interaction and spending on the platform. Full-year revenue guidance was set at $5.87 billion–$6.14 billion.
In the wake of the report, Canaccord Genuity cut its target price from $140 to $80, while TD Cowen upgraded Roblox from Sell to Hold but lowered its target from $54 to $49. Wedbush had earlier reduced its target from $110 to $90. Within the Interactive Home Entertainment sector, peers remained relatively stable — Take-Two up 0.74%, Electronic Arts down 0.05%, NetEase up 0.51% — underscoring the stock-specific nature of the decline.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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