Roblox Reports 70% User Growth in Q3, Revenue Hits $1.36 Billion

Wells Fargo lowered the firm's price target on Roblox to $107 from $141 and keeps an Overweight rating on the shares. The firm believes in secular growth story, but acknowledges "we were likely underestimating the difficulty of the 2025 content cycle comps." Wells is cutting 2026 and beyond estimates, but sees healthy growth profile and interesting post-Q4 print opportunity for investors with longer duration.

TD Cowen lowered the firm's price target on Roblox to $70 from $77 and keeps a Sell rating on the shares. The firm trimmed its Q4 bookings estimate from $2.30B to $2.24B (+65% year-over-year) based on a slower December than they had been modeling. They also reduced their FY26 estimate from $8.48B to $8.09B, based on the exit rate into 2026.

Wolfe Research lowered the firm's price target on Roblox to $100 from $150 and keeps an Outperform rating on the shares. 2026 could be another positive year for Internet stocks, though maybe not as much outperformance as the prior three years given current, elevated multiples for some of the firm's coverage, the analyst tells investors in a research note. The firm added that it sees opportunities for estimates upside driven by AI developments and product catalysts, a relatively healthy macro backdrop, successful capital allocation, and pockets of re-rating potential.

"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