Roblox shares drop after weak Q3 bookings forecast
BUZZ-Roblox shares drop after weak Q3 bookings forecast ** Shares of gaming platform Roblox RBLX.N fall nearly 16% to $40.84 premarket
** Co forecast a steeper-than-expected drop in third-quarter bookings on Thursday as a shift toward lower-spending games and new safety measures weigh on in-app purchases
** Piper Sandler says co's revenue miss was driven by two factors: 2025's high-monetizing viral hits matured and were replaced by lower-monetizing evergreen content, while a discovery algorithm change shifted focus toward long-term retention rather than near-term monetization
** Piper Sandler says Roblox's safety initiatives are coming as the company faces tough year-over-year comparisons and the looming launch of GTA 6, making it harder for management to improve investor sentiment
** Expects Q3 bookings between $1.58 billion and $1.65 billion, compared with estimates of $1.77 billion - data compiled by LSEG
** Thirty-seven analysts rate the stock "buy" on average; median PT is $60 - data compiled by LSEG
** Up to last day's close, the stock had fallen ~40% YTD
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))