Roblox Opens About 3.5% Lower After Citi Cuts Rating to Neutral

Roblox Corporation shares opened about 3.5% lower Friday, Nov. 13, after Citi downgraded the gaming company from Buy to Neutral, pointing to concerns about slowing engagement and potential risks to bookings growth.

Citi maintained its $55 price target.

Roblox's third-quarter update showed the platform averaged 138 million daily active users, 9% fewer than a year earlier, while users logged 33.8 billion hours, down 15%. The company also forecast fourth-quarter bookings of $1.89 billion to $2 billion, 10% to 15% below the year-earlier period, in its outlook.