Roblox shares tumble as platform grapples with shifting user habits and safety concerns

Over the past year Roblox Corp. has lost an estimated $97.5 billion Canadian dollars in market capitalization, with its share price sliding from $129.63 US to $36.96 US. Executives blamed lower spending from younger users and adjustments to the game recommendation algorithm, while also highlighting efforts to draw older gamers. Critics argue that the platform's maturing audience, combined with heightened safety concerns and recent verification measures, could be driving users away.

The company reported that a smaller share of daily active users now falls under the 13-17 age bracket, and safety watchdogs have flagged numerous reports involving the service. Nonetheless, Roblox’s leadership remains optimistic, citing improved retention and growth in markets such as Japan and India.