Roblox Under Investigation for Minors' Safety Risks
Roblox Corp's stock fell 4.40% as it hit a 20-day low amid concerns over its safety measures for minors.
The Netherlands Authority for Consumers and Markets (ACM) has launched an investigation into Roblox to evaluate whether the company has implemented adequate protections for minors on its platform. This investigation, expected to last approximately 12 months, raises significant concerns about the platform's content safety, particularly regarding minors being exposed to violent or explicit content. Following this news, analysts have expressed caution, with Wedbush lowering its price target for Roblox from $165 to $110, reflecting apprehension about the company's compliance capabilities and potential operational risks.
The ongoing investigation could have long-term implications for Roblox's operations and reputation, prompting the company to enhance its safety measures to meet regulatory expectations. Investors are closely monitoring the situation as it unfolds.
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