Roblox is trading 6.6% lower at $43.33 after Jefferies downgraded the stock to Underperform from Hold and cut its price target to $38.
- Jefferies said the post-Q2 rally had priced in bookings growth expectations it viewed as too high.
- Broader risk-off pressure followed President Trump rejecting Iran’s proposal, lifting oil prices and rekindling inflation concerns as Treasury yields rose; this risk may add to the decline.
- Lingering concern about the previously reported Q3 bookings outlook may also weigh.