Roblox shares nosedived nearly 29% on July 31, marking the worst single-day decline in the company’s history after Q2 results revealed slowing growth, missed targets, and a yanked full-year outlook.
The stock dropped to lows in the $34-$48 range as Wall Street responded with a flurry of downgrades and slashed price targets.
What went wrong
Bookings growth decelerated to just 8% year-over-year in Q2. Management attributed the slowdown to a deliberate retreat from high-monetizing viral experiences.
Daily active user growth slowed significantly, weighed down by two major platform changes: mandatory age verification and new discovery algorithms that prioritize long-term user retention over immediate monetization.
