Following a violent incident, the company has promised to implement tighter monitoring and comply with local laws.
- Roblox was under pressure after Malaysian police alleged that gaming on its platform may have influenced a nine-year-old to attack his brother.
- The company has recently begun investing heavily in protecting young users and has also tightened its messaging rules for children under 13.
- Since reporting its quarterly results on Thursday, RBLX has lost about 15%.
Roblox Corp. (RBLX) reportedly said it would share data with the Malaysian government and enhance safety measures for its users, following a stabbing case linked to the company in the Southeast Asian country.
Since reporting its quarterly results on Thursday, Roblox’s stock has lost about 15%.
Roblox Budges?
Following her visit with Roblox representatives, Malaysian Youth and Sports Minister Hannah Yeoh said, “They gave their assurance that they would enhance safety through the use of AI technology and human monitoring, and are willing to work with the Malaysian government, especially when it comes to data sharing and compliance with government regulations.” The minister’s comments, made through a Facebook post, were earlier reported by Bloomberg.
Roblox was under pressure after Malaysian police alleged that gaming on its platform may have influenced a nine-year-old to attack his brother, as the latter damaged his phone. The child in question was reportedly addicted to playing games on Roblox’s immersive gaming platform, amassing about a billion points.
Why It’s Important
Roblox faces lawsuits in the U.S. over its lack of safety guardrails. A Reuters report stated in late October that the Republican Florida Attorney General James Uthmeier said he plans to issue criminal subpoenas to Roblox, calling it a “breeding ground for predators” that puts children at risk. “They enabled our kids to be abused.” Short-seller Hindenburg has also criticized the company for inadequate child safety measures. Following the allegations, the company has begun investing heavily in protecting young users and has also tightened its messaging rules for children under 13 years old.
What Retail’s Feeling About Roblox Stock
On Stocktwits, retail traders were ‘neutral’ toward Roblox stock by early Monday, and the message volume was ‘high.
Following the quarterly results, analysts rushed to revise their price targets for the stock, with estimates ranging from $120 to $160, according to note summaries seen on The Fly. A Wells Fargo analyst blamed the post-earnings dip on management commentary for 2026, which was perceived as a “talk down” of bookings and margins. The analyst noted that a catch-up period of investment is likely to follow the torrid 2025 engagement growth, but the bookings outlook is brighter following a strong Q3 and Q4 performance.
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