Roblox $RBLX ( ▼ 2.31% ) slipped about 3 percent in premarket trading after JPMorgan downgraded the stock to neutral from overweight. Analyst Cory Carpenter said the platform’s biggest viral hits including “Grow a Garden” and “Steal a Brainrot” have already peaked, and Roblox will need fresh breakout games to keep momentum heading into 2026.
JPMorgan also flagged several near term risks. Russia’s ban on Roblox could affect up to 10 million daily active users, since the country is one of the platform’s top five markets. A new facial age estimation feature rolling out next month may also temporarily reduce engagement, according to Roblox’s own guidance.
Competition is another concern. Take-Two’s $TTWO ( ▲ 0.5% ) upcoming blockbuster “Grand Theft Auto VI” is expected to dominate industry attention, and the new partnership between Fortnite and Unity Software $U ( ▲ 4.31% ) could create additional pressure. Carpenter said these factors make the risk reward balance less compelling next year.