Benchmark Downgrades Roblox Corp. (RBLX) to Sell, 'Ah Heck, Here We Go Again'

Benchmark analyst Mike Hickey downgraded Roblox Corp. (NYSE: RBLX) from Hold to Sell, PT $33.00.

The analyst comments "Downgrade to Sell: We downgrade Roblox to Sell from Hold. We believe the platform may be entering lifecycle decline as weakness broadens from new-user acquisition in 1Q to monetization in 2Q. The issue is no longer a single product disruption, but deterioration across acquisition, engagement quality, monetization, cash flow and visibility. Q3 guidance was substantially below expectations, with midpoint bookings and AEBITDA 13.5% and 49.1% below consensus, respectively, and FCF guided to $(27.5)M. Management also withdrew annual guidance, provided no meaningful Q4 framework."

For an analyst ratings summary and ratings history on Roblox Corp. click here. For more ratings news on Roblox Corp. click here.

Shares of Roblox Corp. closed at $48.67 yesterday.

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