Jefferies Downgrades Roblox, Sees Bookings Growth Well Below Wall Street, Stock Falls

Roblox Corporation (NYSE: RBLX) shares fell 4.69% to $44.26 after Jefferies downgraded the stock from Hold to Underperform, maintaining a price target of $38, indicating an 18% downside. Jefferies forecasts only 5% bookings growth for fiscal 2027, significantly below Wall Street's estimate of 13%, and has reduced its own bookings estimate by 6% and EBITDA estimate by 21%. The firm expressed concerns over Roblox's need for sustained high investment levels amid slowing growth, drawing parallels to Meta's financial challenges between 2017 and 2019.