NEW YORK, January 7, 2026, 18:24 EST
- Roblox shares closed down 6.4% on Tuesday after an overnight outage and a TD Cowen price-target cut.
- The company used CES 2026 to roll out a new “Homepage Feature” ad unit and broaden programmatic ad access.
- A valuation note said the shares trade below a DCF estimate, but at a steep sales multiple versus peers.
Roblox shares fell 6.4% on Tuesday, lagging a broader market rise, after an overnight outage and a price-target cut from TD Cowen put fresh focus on the platform’s growth. The stock ended at $75.83. Nasdaq
The move extends a pullback of about 17% over the past month and lands just as investors position for Roblox’s next earnings update. A key question is whether new ad products can keep revenue momentum if engagement cools after a year shaped by viral hits.
TD Cowen analyst Doug Creutz cut his target to $70 from $77 and kept a Sell rating, saying December engagement slowed more than expected. He wrote that hours spent on Roblox experiences rose 74% year-on-year in December, down from 99% in November and 110% in October, and called it the “lowest percentage growth during a holiday season in at least four years.” Creutz trimmed his fourth-quarter bookings forecast to $2.24 billion; bookings is the company’s sales measure that includes deferred revenue from virtual currency that can be spent later. Investing
Separately, Roblox users reported problems overnight, with Downdetector reports spiking to more than 20,000 around 1:40 a.m. before dropping to a few dozen by about 5 a.m., Connecticut Post reported. The cause was not immediately clear. Ctpost Sherwood
Hours later, Roblox pitched advertisers on new placements at CES in Las Vegas, unveiling a “Homepage Feature” that turns a brand’s video into a clickable 3D experience inside the app. Roblox said the home screen is the starting point for more than 151 million daily active users and the format will be sold on a CPM basis, or cost per thousand impressions. “Amazon DSP enables advertisers to access high-quality video inventory at scale across these emerging platforms,” said Chris Conetta, a director at Amazon DSP, one of the new partners. Roblox
Roblox is also widening programmatic ad access — automated buying and selling of inventory — as it lines up demand-side platforms such as Amazon DSP and Liftoff with supply-side groups like Index Exchange, Magnite and PubMatic. Magnite said its integration will make Roblox’s Rewarded Video ads available to more advertisers globally, pitching brand-suitability tools aimed at screening content. Magnite
A Simply Wall St valuation note published on Yahoo Finance said a discounted-cash-flow model implied an equity value of about $83.42 a share, versus $75.83 at Tuesday’s close. But it said Roblox trades at about 11.9 times sales, a rich multiple that leaves little room for a sharper slowdown. The note compared the sales multiple with game makers such as Electronic Arts and Take-Two Interactive. Yahoo
Ad growth is not guaranteed. David Taylor, chief executive of Roblox publisher and analytics firm Creator Games, said 3D formats mean “there’s a ton of telemetry that goes into measuring a view,” complicating measurement and pricing. Outages and the platform’s long-running safety and brand-suitability debates can also make advertisers cautious. Gamesbeat
For now, investors are bracing for results. Zacks’ consensus forecast calls for Roblox to post a quarterly loss of 50 cents a share on revenue of $2.07 billion, with full-year revenue expected at $6.64 billion.
