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Wells Fargo, TD Cowen Trim Roblox Targets as December Growth Slows

Wells Fargo maintains an Overweight rating, signaling confidence in near‑term bookings.

Overview

  • On January 8, Wells Fargo cut its Roblox price target to $107 and said December bookings likely grew in the mid‑30% range versus high‑60% growth in October and November.
  • The firm expects Roblox to guide 2026 bookings to $7.85 billion–$8.0 billion, implying about 19%–21% growth with the strongest gains anticipated in the first quarter.
  • TD Cowen on January 6 lowered its price target to $70 and kept a Sell rating, citing slowing user engagement in December.
  • TD Cowen reported year‑over‑year growth in hours spent fell to 74% in December from 99% in November and 110% in October, calling it the weakest holiday‑season growth in at least four years.
  • Recent commentary highlights mixed sentiment, with B. Riley initiating a Buy at $125 in December and Jim Cramer saying he would consider only a speculative position as shares remain well below last year’s highs.