Roblox set for worst one-day drop as discovery changes hurt in-app spending

By Reuters

July 31, 20268:49 AM PDTUpdated July 31, 2026

July 31 (Reuters) - Roblox shares plunged nearly 30% on Friday, set for their worst one-day decline on record, after the gaming platform forecast a ​sharp drop in bookings, stocking concerns that recommendation algorithm changes ‌could further pressure near-term spending.

If losses hold, Roblox is on track to erase more than $10 billion from its market value, which stood at about $34.9 billion before ​the selloff.

• Roblox said on Thursday it revamped its recommendation algorithm to ​prioritize games with stronger long-term retention over "cash-grabby" titles focused on ⁠short-term spending, hurting bookings as users shifted toward less-monetized experiences.
• The ​changes led second-quarter bookings to the low end of Roblox's forecast range ​at $1.56 billion, with executives cautioning that monetization weakness could persist in the current quarter.
• "Comparisons get tougher through August and September just as monetization is more challenged, particularly ​for U13 users, where we suspect parents are simply less willing ​to hand over highly discretionary dollars right now," analysts at Wedbush said, after ‌downgrading ⁠the stock to neutral.
• Roblox forecast its first quarterly bookings decline in four years, expecting a 14% to 18% year-over-year drop in the third quarter, compared with LSEG-compiled estimates for roughly an 8% decline.
• Earlier this year, ​Roblox unveiled age-based ​accounts and age-verification ⁠features that tailor platform access and communication settings to a user's age, helping curb interactions between younger ​children and older users.
• With these changes pressuring near-term growth, ​management ⁠declined to provide an updated full-year outlook for bookings, which is generated from in-game purchases of virtual currency "Robux".
• Investors are also bracing for a more ⁠competitive ​gaming market later this year, with the ​launch of Take-Two's "Grand Theft Auto VI" expected to intensify the battle for player engagement and ​discretionary spending.

Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore