Roblox shares plummet on first-ever year-over-year decline in Q3 bookings guidance, sparking analyst downgrades and sector-wide losses.
Roblox (RBLX) stock plunged 29% to $34.47 in Friday trading, its steepest single-day drop on record, after the company warned of a year-over-year decline in Q3 bookings. The guidance marked the first such decline in Roblox’s history, raising concerns over monetization trends.
The sell-off rippled through the gaming sector, dragging Take-Two Interactive (TTWO) down 3% to $240.06 and the VanEck Video Gaming and eSports ETF (ESPO) 4% to $93.83. Analysts responded swiftly, with BMO cutting its price target from $100 to $45, while Morgan Stanley maintained an Overweight rating at $55, citing long-term engagement resilience.
Electronic Arts (EA) remained flat at $209.88, highlighting the uneven impact across gaming peers. The broader sector’s decline underscored vulnerabilities in concentrated funds tied to Roblox’s performance.