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.
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. https://www.investing.com/news/stock-market-news/roblox-stock-falls-after-td-cowen-cuts-price-target-on-growth-concerns-93CH-4433317
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.
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. https://corp.roblox.com/newsroom/2026/01/roblox-expands-advertising-platform
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.
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.
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. https://gamesbeat.com/roblox-reveals-new-homepage-feature-ad-format-at-ces/
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.
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