Deutsche Bank downgrades RBLX to Hold and slashes price target to $38 after Q2 bookings miss and Q3 contraction outlook.
Roblox shares crashed 27% on July 31, erasing $9 billion in market value, after the company projected its first year-over-year bookings decline for the current quarter. The drop marked its worst trading session ever despite revenue and user growth in Q2, signaling underlying weakness in spending trends.
Q2 bookings reached $1.557 billion, landing at the low end of guidance and 3% below analyst expectations. Deutsche Bank analyst Benjamin Black downgraded the stock to Hold from Buy, cutting his price target to $38 from $56, citing reduced near-term visibility.
The downgrade underscored investor concerns over slowing momentum, even as Roblox’s core metrics appeared stable. The stock’s decline reflects broader skepticism about the company’s ability to sustain growth amid macroeconomic pressures.