New York, January 31, 2026, 05:25 (EST) — Market closed.
- Roblox shares ended Friday at $65.76, tumbling 13.2% following a sharp intraday rollercoaster
- Dutch consumer watchdog launched an EU-wide investigation into risks to minors under the Digital Services Act
- Investors are now turning their attention to Roblox’s Feb. 5 earnings, looking for clues on bookings and user engagement
Roblox shares ended Friday down 13.2% at $65.76, after fluctuating between $64.54 and $75.33 during the session. With U.S. markets closed over the weekend, this decline sets the stage for a nervous Monday open for the videogame platform’s stock. (Yahoo Finance)
The drop is significant as Roblox approaches its quarterly report, sparking renewed concerns over safety, user spending, and growth. With a predominantly young user base, any regulatory news tends to quickly weigh on sentiment.
Game and game-tool stocks took a broader hit as investors scrambled to factor in new generative AI tech that might reshape content creation. For Roblox, which pitches itself as much a creation platform as a game catalogue, the discussion hits particularly close to home.
The Netherlands’ consumer watchdog ACM has launched an investigation into Roblox, focusing on potential risks to underage users within the EU. The probe is based on the EU’s Digital Services Act, which compels large platforms to enhance protections for minors. A Roblox spokesperson said the company plans to cooperate and “look forward to providing the ACM with further clarity on the many policies and safeguards we have in place to protect minors.” (Reuters)
Roblox got caught in a broader sell-off after Google revealed “Project Genie,” an AI model that generates interactive digital worlds from text or image prompts. On Friday afternoon, Take-Two Interactive dropped 10%, Unity Software plunged 21%, and Roblox fell more than 12%. Joost van Dreunen, a games professor at NYU’s Stern School of Business, noted that the real disruption will hit when AI starts creating experiences that are “uniquely its own.” (Reuters)
The tool focuses on tasks typically managed by game engines like Epic Games’ Unreal Engine and Unity. Roblox operates in a similar space but with a twist: creators develop within Roblox’s own platform, and the company profits when users purchase virtual items in those games.
Roblox plans to release its fourth-quarter and full-year 2025 results after the market closes on Feb. 5, followed by a conference call at 4:30 p.m. EST, the company announced. Investors will focus on bookings—the value of in-platform sales before revenue recognition—and management’s outlook on engagement and spending trends heading into 2026. (Roblox Investor Relations)
Investors are watching closely for how Roblox addresses moderation, age verification, and other safety measures—factors that can drive up costs even if user growth remains steady. Changes in how the company weighs safety against user friction could swiftly alter market expectations.
Probes and policy changes are tricky to predict: stricter enforcement in Europe might bring tighter controls and increased compliance expenses, but excessive friction risks hurting engagement. Should bookings fall short on Feb. 5, the stock may find it tough to bounce back after Friday’s drop.
The market stays closed until Monday, leaving traders to see if Friday’s dip sparks more selling or prompts bargain hunters to step in. Roblox’s next major event is Feb. 5, when it reports earnings, updates guidance, and shares any insights on regulators and the shifting tech landscape.
