Roblox Shares Plunge After Weak Outlook Despite AI Push
Roblox Corporation shares fell 16% following a cautious fourth-quarter forecast, even as the company launches AI tools to attract adult gamers.
Shares of Roblox Corporation plunged more than 16% after the company issued a weak fourth-quarter outlook, forecasting a 10% to 15% decline in bookings. This caution comes as the company increases investments in infrastructure and artificial intelligence, despite third-quarter revenue rising 16% to $1.6 billion and beating analyst expectations. Bookings for the period ending September 30, 2026, fell 12% year-over-year to $1.7 billion.
To counter a decline in engagement—marked by a 9% year-over-year drop in daily active users to 138 million and a 15% decrease in total hours spent—the company is aggressively targeting users aged 18 and older. This demographic monetizes 50% more than younger users in the United States. As part of this strategy, Roblox is implementing a generative AI initiative called Universal Player, which aims to enable the import of existing console, PC, and mobile games onto the platform with added multiplayer and monetization features.
CEO David Baszucki stated that AI is fundamentally reshaping the gaming industry, noting that over 80% of the platform's top 100 games already utilize AI tools. The company plans to launch Roblox Everywhere and Roblox Reality in the first half of 2027 and is currently alpha testing its AI-powered Build feature in regions including New Zealand, Singapore, Serbia, and Thailand.
