Roblox Corporation Under Investigation for Potential Securities Violations

"Game On" is The Fly's weekly recap of the stories powering up or beating down video game stocks.'MARIO KART WORLD':According to, Nintendo's"Mario Kart World" was the top-selling video game in Japan the week of December 1-7. Other top selling games in the country that week were Nintendo's "Kirby Air Riders," "Pokemon Legends: Z-A," Square Enix's"Octopath Traveler 0," and Nintendo's "Metroid Prime 4: Beyond." "Metroid" and "Octopath Traveler" were the only games in the top ten that were new.XBOX MANAGEMENT:Microsofthas made a number of management changes in its Xbox business, with Xbox CFO Tim Stuart now transitioning to COO of ZeniMax, The Verge's Tom Warrenlast week. Xavier Pokorzynski, who has worked on the gaming finance side at Microsoft for nearly 12 years, is now Microsoft Gaming CFO, Warren said.TAKE-TWO INITIATION:B. Riley last week initiated coverage of Take-Twowith a Buy rating and $300 price target. The firm said its bullish view is centered around the planned November 2026 debut for "Grand Theft Auto VI." The game will be the largest entertainment launch in history and serve as an "event-driven catalyst" for the shares, the analyst tells investors in a research note. Riley also sees further growth for Take-Two's recurrent consumer spending.ROBLOX DOWNGRADE:JPMorgan downgraded Robloxto Neutral from Overweight with a price target of $100, down from $145. The company's engagement inflected higher in 2025 due to viral hits like Grow a Garden and Steal a Brainrot, the analyst told investors in a research note. However, JPMorgan thinks the shares "could take a breather" in 2026 due to engagement headwinds, bookings growth slowing, and margins compressing. Roblox's engagement trends have started to moderate with most viral experiences past their peaks, the analyst said.to check out recent Media Buzz Sentiment on Roblox as measured by TipRanks.MORE VIDEO GAME NEWS:Bethesda's 2011 hit "The Elder Scrolls V: Skyrim" ison Nintendo Switch 2Sony'sBungie said that its upcoming multiplayer shooter "Marathon" willat $39.99

JPMorgan downgraded Roblox to Neutral from Overweight with a price target of $100, down from $145. The company's engagement inflected higher in 2025 due to viral hits like Grow a Garden and Steal a Brainrot, the analyst tells investors in a research note. However, JPMorgan thinks the shares "could take a breather" in 2026 due to engagement headwinds, bookings growth slowing, and margins compressing. Roblox's engagement trends have started to moderate with most viral experiences past their peaks, the analyst tells investors in a research note.

Jefferies lowered the firm's price target on Roblox to $100 from $115 and keeps a Hold rating on the shares. The firm recommends staying selective across Internet stocks, as incremental investments could limit margin expansion and concerns around AI disintermediation could limit multiple appreciation, the analyst tells investors in the firm's "2026 Internet Playbook" note.

B. Riley last night initiated coverage of Roblox with a Buy rating and $125 price target. Roblox has built one of the premier next-generation entertainment platforms and is benefiting from two "mutually reinforcing network effects," content and social, the analyst tells investors in a research note. Riley views Roblox as a core stock holding, citing its positive longer-term fundamental outlook. The firm recommends initiating or adding to positions following the 30% share correction.