Why Roblox (RBLX) Stock Crashed Hard Last Week?
Oct 6 - Roblox 
RBLX shares dropped 8% on Friday after M Science analyst Corey Barrett flagged a slowdown in the company's bookings growth.
The online gaming platform had seen a big rally earlier this year, with RBLX stock up more than 112% year-to-date, but concerns around growth momentum now weigh on investor sentiment.
Barrett pointed out that while Roblox continues to report strong global Daily Active User (DAU) growth, bookings in its largest markets have cooled. In the U.S., bookings growth likely slowed to the low 30% range year-over-year in September, down from the mid-to-high 40% in August and mid-to-high 50% in July.
Europe also saw some moderation, which Barrett linked to seasonality as students returned to school. At the same time, Roblox maintained strong performance in non-core regions and hit new records in parts of Europe and the Rest of the World.
Mobile DAU growth also picked up across most regions from Q2 to Q3, although September gains in the U.S. and Asia-Pacific remained in the low single digits. Despite continued expansion, Barrett emphasized that the slowdown in Roblox's core markets looks sharper than what many investors expected from global engagement trends.
Is RBLX Stock a Buy?
Based on the one year price targets offered by 31 analysts, the average target price for Roblox Corp is $144.71 with a high estimate of $180.00 and a low estimate of $61.13. The average target implies a upside of +17.95% from the current price of $122.69.
Based on GuruFocus estimates, the estimated GF Value for Roblox Corp in one year is $97.48, suggesting a downside of -20.55% from the current price of $122.69. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.