Jefferies downgraded RBLX to underperform with a $38 target due to weak US user growth and low booking forecasts.

Let's talk about Roblox and its downgrading. This is disappointing. Stocks are down by more than 8% at the moment. Since the beginning of the year, this stock has performed very poorly , whether we talk about year-to-date performance or on an annual basis.

Jefferies issues a downgrade to Roblox's rating. If you have children, you know this platform. This platform allows them to play games online ; it is a comprehensive platform. You can create different worlds.

There are games like "Rifles" and others, and it seems that not enough children play them.

Jefferies also points to a recent recovery in stocks . She said that assumes bookings will grow faster than she expects.

They have downgraded its rating from " retain" to "poor performance ". Initially, they were observing from the outside. They are holding firm on their target price of $38, which is lower than our current level.

We are down approximately 8% now. This represents a drop of approximately 20% from Friday's closing levels, about 18 % in fact. The analyst says that the growth in daily users in the United States, and the expectations of its rise, does not believe that will happen.

They point out that you got a boost of viral games like "Ru-Gul," but kids aren't talking about it lately . "Still a Brain Root," they still play it.

Jefferies says that many of these users did not continue. They did not do that. My son used to play " Grow a Garden", but they don't play it anymore . Their big game now is " Rifles" and "Steel a Brain Root".

But there are other platforms that attract the attention of young people. Jefferies is forecasting booking growth of only 5% for fiscal year 2027, compared to market expectations of double-digit growth, Nicole .