Cathie Wood Reduces Investments in Roku and Roblox, Increases Stake in Arcturus Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 26 2025
0mins
Should l Buy RBLX?
Source: TipRanks
ARK Invest Portfolio Adjustments: Cathie Wood's ARK Invest made three portfolio adjustments on September 25, trimming positions in Roku and Roblox while increasing exposure to Arcturus Therapeutics, reflecting a cautious approach amid market volatility.
Market Sentiment on Arcturus: Analysts have a "Strong Buy" consensus on Arcturus stock, with a projected 198% upside over the next year, aligning with Wood's investment strategy focused on sectors with higher growth potential like biotech.
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Analyst Views on RBLX
Wall Street analysts forecast RBLX stock price to rise
22 Analyst Rating
13 Buy
8 Hold
1 Sell
Moderate Buy
Current: 47.570
Low
70.00
Averages
133.89
High
180.00
Current: 47.570
Low
70.00
Averages
133.89
High
180.00
About RBLX
Roblox Corporation operates a platform for connection and communication (Roblox Platform), where every day, people come to create, play, work, learn, and connect with each other in experiences built by its global community of creators. The Company’s platform consists of the Roblox Client, the Roblox Studio, and the Roblox Cloud. Roblox Client is an application that allows users to seamlessly explore 3D immersive experiences. Roblox Studio is the free toolset that allows developers and creators to build, publish, and operate three-dimensional (3D) immersive experiences and other content accessed with the Roblox Client. Roblox Cloud includes the services and infrastructure that power its Platform. The Company operates the Roblox Platform as a live service that allows users to play and socialize with others for free. The Company offers developers and creators the ability to build engaging, immersive experiences and marketplace items that they can easily share with the Roblox community.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Roblox Reports Strong Q1 Growth but Downgrades Guidance
- Strong Performance: Roblox reported a 39% year-over-year revenue increase in Q1, reaching $1.44 billion, with bookings up 43% to $1.73 billion and daily active users averaging 132 million, indicating robust platform engagement and user attraction.
- Guidance Downgrade: Due to the impact of mandatory age verification, Roblox has lowered its full-year 2026 bookings guidance to $7.33 billion to $7.60 billion, down from $8.28 billion to $8.55 billion, with expected growth now at only 10%, significantly below the previously implied 24%.
- Strong Cash Flow: Despite challenges, Roblox generated $596 million in free cash flow during Q1, a 40% increase year-over-year, raising its total cash and investments to $6.2 billion, demonstrating solid financial management amid operational hurdles.
- Increased Valuation Pressure: With shares trading around $45, Roblox's valuation stands at approximately 4.5 times the midpoint of its 2026 bookings guidance, raising concerns in the market due to the company's lack of profitability and slowing growth, contributing to a significant stock price decline.
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Stock Price Adjustment: The target price for Roblox shares has been reduced from $100 to $50, indicating a more conservative market expectation.
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- Investigation Launched: Former Louisiana Attorney General Charles C. Foti, Jr. is investigating claims on behalf of Roblox Corporation (NYSE: RBLX) investors, focusing on potential fraud or unlawful business practices by the company and its executives, which could lead to significant investor losses.
- Law Firm Background: Kahn Swick & Foti, LLC (KSF) is a prominent securities litigation law firm, ranked among the top 10 nationally based on total settlement value last year, highlighting its strength and influence in handling investor claims.
- Investor Contact Information: KSF advises affected investors to contact Managing Partner Lewis Kahn via phone or email for more information and to participate in the investigation, indicating the firm's commitment to protecting investor rights.
- Diverse Clientele: KSF serves a variety of clients, including public and private institutional investors, aiming to recover losses for investors affected by corporate fraud or misconduct, reflecting its broad impact in the securities law sector.
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- Target Price Adjustment: Roblox Corp's target price has been cut to $80.00 from $100.00 by B. Riley.
- Market Impact: This adjustment reflects a shift in market expectations regarding Roblox's performance and valuation.
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- ServiceNow Performance Review: Despite achieving a 20% revenue growth in 2022 and a 19% growth in Q1 2023, ServiceNow's stock has plummeted over 50% from its July peak, reflecting an overreaction from the market towards AI stocks, resulting in a three-year low market cap.
- Roblox Growth Slowdown: The recently implemented age verification measures have led Roblox to revise its 2023 revenue growth forecast down from 23%-29% to 20%-25%, even though last quarter's revenue reached $1.4 billion, a 39% increase, indicating short-term market pressures.
- Boston Scientific Outlook Adjustment: Boston Scientific's Watchman implant showed promising results in trials, but the unclear long-term benefits have caused a reduction in its 2026 revenue growth forecast from 10%-11% to 6.5%-8%, although analysts remain optimistic, viewing the current stock price as a buying opportunity.
- Market Sentiment Analysis: Following a strong rebound in April, the overall market has seen certain growth stocks suffer due to fluctuating market sentiment, prompting investors to carefully assess the long-term value versus short-term volatility of these stocks.
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ROBLOX CORP: CITIGROUP LOWERS TARGET PRICE FROM $90 TO $70
- Target Price Adjustment: Citigroup Group has reduced the target price for Roblox Corp from $90 to $70.
- Market Impact: This adjustment reflects a shift in market expectations regarding Roblox's performance and potential growth.
See More
Roblox Reports Strong Q1 Growth but Downgrades Guidance
- Strong Performance: Roblox reported a 39% year-over-year revenue increase in Q1, reaching $1.44 billion, with bookings up 43% to $1.73 billion and daily active users averaging 132 million, indicating robust platform engagement and user attraction.
- Guidance Downgrade: Due to the impact of mandatory age verification, Roblox has lowered its full-year 2026 bookings guidance to $7.33 billion to $7.60 billion, down from $8.28 billion to $8.55 billion, with expected growth now at only 10%, significantly below the previously implied 24%.
- Strong Cash Flow: Despite challenges, Roblox generated $596 million in free cash flow during Q1, a 40% increase year-over-year, raising its total cash and investments to $6.2 billion, demonstrating solid financial management amid operational hurdles.
- Increased Valuation Pressure: With shares trading around $45, Roblox's valuation stands at approximately 4.5 times the midpoint of its 2026 bookings guidance, raising concerns in the market due to the company's lack of profitability and slowing growth, contributing to a significant stock price decline.
See More
Piper Sandler Downgrades ROBLOX CORP to Neutral and Lowers Price Target from $100 to $50
Company Overview: Roblox Corporation has made significant changes to its financial outlook and stock price targets.
Stock Price Adjustment: The target price for Roblox shares has been reduced from $100 to $50, indicating a more conservative market expectation.
See More
Investigation into Roblox Corporation by Kahn Swick & Foti
- Investigation Launched: Former Louisiana Attorney General Charles C. Foti, Jr. is investigating claims on behalf of Roblox Corporation (NYSE: RBLX) investors, focusing on potential fraud or unlawful business practices by the company and its executives, which could lead to significant investor losses.
- Law Firm Background: Kahn Swick & Foti, LLC (KSF) is a prominent securities litigation law firm, ranked among the top 10 nationally based on total settlement value last year, highlighting its strength and influence in handling investor claims.
- Investor Contact Information: KSF advises affected investors to contact Managing Partner Lewis Kahn via phone or email for more information and to participate in the investigation, indicating the firm's commitment to protecting investor rights.
- Diverse Clientele: KSF serves a variety of clients, including public and private institutional investors, aiming to recover losses for investors affected by corporate fraud or misconduct, reflecting its broad impact in the securities law sector.
See More
B. Riley Lowers Target Price for Roblox Corp to $80.00 from $100.00
- Target Price Adjustment: Roblox Corp's target price has been cut to $80.00 from $100.00 by B. Riley.
- Market Impact: This adjustment reflects a shift in market expectations regarding Roblox's performance and valuation.
See More
Market Recovers but Growth Stocks Struggle
- ServiceNow Performance Review: Despite achieving a 20% revenue growth in 2022 and a 19% growth in Q1 2023, ServiceNow's stock has plummeted over 50% from its July peak, reflecting an overreaction from the market towards AI stocks, resulting in a three-year low market cap.
- Roblox Growth Slowdown: The recently implemented age verification measures have led Roblox to revise its 2023 revenue growth forecast down from 23%-29% to 20%-25%, even though last quarter's revenue reached $1.4 billion, a 39% increase, indicating short-term market pressures.
- Boston Scientific Outlook Adjustment: Boston Scientific's Watchman implant showed promising results in trials, but the unclear long-term benefits have caused a reduction in its 2026 revenue growth forecast from 10%-11% to 6.5%-8%, although analysts remain optimistic, viewing the current stock price as a buying opportunity.
- Market Sentiment Analysis: Following a strong rebound in April, the overall market has seen certain growth stocks suffer due to fluctuating market sentiment, prompting investors to carefully assess the long-term value versus short-term volatility of these stocks.
See More
ROBLOX CORP: CITIGROUP LOWERS TARGET PRICE FROM $90 TO $70
- Target Price Adjustment: Citigroup Group has reduced the target price for Roblox Corp from $90 to $70.
- Market Impact: This adjustment reflects a shift in market expectations regarding Roblox's performance and potential growth.
See More
