Citi Just Downgraded Roblox Stock. Here's Why.

Roblox (RBLX) shares have been a disappointment for investors in 2026, and a senior Citi analyst believes a meaningful near-term recovery is unlikely heading into the new year. In a research report today, Jason Bazinet downgraded RBLX to “Neutral” and maintained his price target at $55, indicating roughly 7% upside from its previous close. 

At the time of writing, Roblox stock is down nearly 40% versus the start of this year. 

Here’s Why Citi Downgraded Roblox Stock

Bazinet recommends caution in playing RBLX shares mostly because he’s not entirely convinced that the company can replace the “Steal An Egg”-driven strength in its Q3 bookings. The metric came in above Street expectations in the third quarter, but amid waning popularity of the simulation game, bookings consumption activity has crashed 56% from its September high. 

Citi highlighted a notable shortage of fresh hits, raising questions about what will sustain spending as gamers move beyond “Steal An Egg.”

In short, a successful experience can lift a quarter, but sustainable growth requires that players have reasons to return and spend. Bazinet’s downgrade of Roblox reflects reduced confidence in that pipeline.

GTA VI Could Pose a Threat to RBLX Shares

In its research note, Citi also highlighted a 21% decline in month-to-date daily active users (DAUs). That weakness precedes another possible challenge: the launch of Grand Theft Auto VI, scheduled for Nov. 19, which the firm believes will compete rather fiercely for gamers’ attention. 

Bazinet now estimates Q4 bookings of about $1.92 billion, notably below RBLX’s own guidance of $1.95 billion. 

Even from a technical perspective, Roblox shares tanked below their 20-day moving average (MA) this morning, indicating bears have taken back control of the near term.

What Other Analysts Expect From Roblox

Interestingly, Citi is still among the more bullish Wall Street firms on Roblox heading into 2027. 

While the consensus rating on RBLX stock remains at “Moderate Buy,” the mean price objective of about $50 signals a lack of any further upside from current levels.

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.