Did Lawsuit Over Child Safety Just Shift Roblox’s (RBLX) Investment Narrative?

Simply Wall St
  • In July 2025, Roblox Corporation and Discord Inc. were sued in California over allegations their platforms enabled the sexual exploitation of a minor, intensifying scrutiny on their child safety measures. This legal challenge sharpens the spotlight on Roblox as it rolls out new educational content and youth-focused safety features to bolster its image as a safe space for young users.
  • We'll explore how this high-profile lawsuit and Roblox's new safety initiatives could influence its long-term investment outlook.

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Roblox Investment Narrative Recap

Roblox shareholders are generally betting on the company’s ability to capture a larger share of the global gaming and social platform market, fueled by user growth, innovation, and monetization advances. While the latest lawsuit alleging a failure to protect minors intensifies scrutiny, this development introduces heightened reputational and regulatory risk but does not directly alter the key short-term catalyst, which remains the expansion of user engagement and platform features.

Among recent updates, Roblox’s rollout of new youth safety tools, such as age estimation and enhanced control over connections, stands out as most relevant. These features address the ongoing debate around trust and safety, which is central to both the platform’s appeal and risks, especially as legal and parental scrutiny grows.

However, with heightened attention now on user safety and legal exposure, investors should be aware...

Read the full narrative on Roblox (it's free!)

Roblox's outlook forecasts $7.4 billion in revenue and $670.1 million in earnings by 2028. This is based on an expected 27.1% annual revenue growth rate and a $1.61 billion improvement in earnings from the current figure of -$935.4 million.

Uncover how Roblox's forecasts yield a $72.66 fair value, a 39% downside to its current price.

Exploring Other Perspectives

RBLX Community Fair Values as at Jul 2025

Fair value projections from the Simply Wall St Community span from US$11.66 to US$94.62, with 12 independent estimates highlighting wide disagreement. With regulatory and legal concerns front and center, your outlook could shift meaningfully given how critical trust is for Roblox’s continued growth.

Explore 12 other fair value estimates on Roblox - why the stock might be worth as much as $94.62!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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