Financial institutions BMO Capital Markets and Deutsche Bank downgraded the rating of Roblox Corporation shares after the publication of financial results for the second quarter of 2026, which did not meet market expectations. BMO analyst Brian Pitz downgraded the rating to "Market Result" from "Better than the Market" and lowered the target price from $100 to $45. His colleague from Deutsche Bank, Benjamin Black, downgraded the rating to "Hold" from "Buy", lowering the target price from $56 to $38. Both experts referred to the transition of users from highly profitable virus projects to new formats with lower hourly revenue generation. As a result, the bookings rate was 2.5% lower than forecast, and the target for the third quarter was 12.5% lower than the average consensus of analysts.

A key factor affecting the company's financial metrics was the modification of the content recommendation algorithm, introduced in April this year. This strategic shift prioritizes long-term audience retention at the expense of short-term monetization, which led to the first year-on-year decline in the company's history. The management withdrew the annual forecast, recognizing the need for time to adapt the economic model of the platform to the new conditions. Bookings for the quarter totaled $1,557 million, which was at the lower end of the forecast and about 3% below consensus. BMO expects pressure on engagement and monetization for several quarters, especially in the fourth quarter of 2026 due to the release of GTA VI.

Despite the revision of short-term estimates, both analytical firms remain positive about the long-term prospects for the development of the platform. Deutsche Bank emphasizes that the improvement of the content detection system, increased security standards and the growth of the audience over the age of 18 will contribute to the expansion of the addressable market. BMO also notes the positive dynamics of age verification indicators, although Deutsche Bank predicts that stock prices will remain in a sideways range until the monetization model in the United States and Canada stabilizes.