Wells Fargo and TD Cowen have reduced their price targets for Roblox Corporation (RBLX), signaling cautious optimism despite the platform's continued user engagement. The moves reflect revised expectations on revenue growth and profitability timelines.
- Wells Fargo reduced RBLX price target to $52 from $65
- TD Cowen lowered target to $50 from $68
- RBLX reported 170 million monthly active users in late 2025
- Stock fell 3.1% in after-hours trading on January 11, 2026
- Market cap stood at $32.7 billion as of January 11, 2026
- Firms cited slower monetization and rising competition as key concerns
Wells Fargo downgraded its price target for Roblox (RBLX) to $52 from $65, citing slower-than-expected monetization progress and increased competition in the virtual experiences sector. The firm maintained a 'Market Perform' rating, indicating no strong conviction for outperformance. Simultaneously, TD Cowen reduced its target to $50 from $68, citing macroeconomic headwinds affecting digital advertising spend and prolonged user acquisition costs. Both firms emphasized that Roblox’s core platform strength remains intact, with over 170 million monthly active users reported in late 2025. However, they highlighted a growing need for sustainable cash flow generation beyond initial user growth. The stock responded with a 3.1% decline in after-hours trading, bringing RBLX’s market cap to approximately $32.7 billion as of January 11, 2026. Investors are now closely monitoring upcoming Q4 earnings for updates on gross merchandise volume trends and developer revenue share performance.