Roblox stock fell 29% on Friday morning to $34.47 after the company said Q3 bookings would decline year over year for the first time. The drop was the company’s worst trading day ever and followed Q2 results that showed bookings of $1.6 billion, up 8% from a year earlier.
Roblox projected Q3 bookings of $1.576 billion to $1.653 billion, a range that implies a year-over-year decline of 18% to 14%. Revenue rose 36% to $1.5 billion in Q2, but bookings came in at the low end of guidance, leaving little room for a softer third quarter.
Benjamin Black Cuts Roblox
Benjamin Black of Deutsche Bank cut his price target to $38 from $56 and moved his rating to Hold from Buy after calling the Q3 outlook disappointing. Benchmark cut Roblox to Sell from Hold with a $33 target, while BTIG lowered it to Sell from Neutral with a $30 target.
Wedbush also moved to Neutral from Outperform and set a $40 target. Barclays analyst Ross Sandler cut the firm’s target to $47 from $60 and kept an Equal Weight rating, showing that the response was not limited to one corner of the market.
BMO and Morgan Stanley
BMO Capital went further, cutting Roblox to Market Perform from Outperform and slashing its target to $45 from $100. Morgan Stanley kept an Overweight rating at $55, arguing that recovering engagement leaves the long-term platform flywheel intact even as near-term monetization stays under pressure.
The sell-off spread beyond Roblox. Take-Two Interactive Software fell 3% to $240.06, and the VanEck Video Gaming and eSports ETF was down 4% to $93.83, while Electronic Arts was flat at $209.88.
Q3 bookings range
The Q3 range leaves investors with a narrower read on the rest of fiscal 2026 guidance. At the low end, bookings would fall 18%; at the high end, they would still drop 14%. For shareholders, the next test is whether Roblox can move bookings back toward growth quickly enough to slow the pressure on the stock.
What happens next will hinge on the company’s Q3 bookings outcome and whether analysts keep trimming expectations. Friday’s move showed how quickly the market is pricing in a slower monetization path when a growth company gives its first negative bookings guide.
