Roblox Corp. (NYSE:RBLX) is facing a significant technical breakdown as its stock momentum plummeted to a percentile rank of 12.92 this week.
RBLX Momentum Sinks Along With A YTD Fall
The social gaming giant, often positioned as a primary competitor to Meta Platforms Inc. (NASDAQ:META) in the metaverse space, has seen its shares sink 17.12% year-to-date.
This decline follows a staggering 46.25% drop over the last six months, leaving RBLX‘s price trends in the “red” across short, medium, and long-term horizons, as per Benzinga’s Edge Stock Rankings.
Regulatory Storm Clouds in Europe
The primary catalyst for the downward trajectory is intensifying global scrutiny over the platform’s protection of younger users.
The Netherlands Authority for Consumers and Markets (ACM) recently launched a formal investigation into whether Roblox adequately shields minors from harmful content and unsafe interactions.
This probe is being conducted under the EU’s strict Digital Services Act (DSA), which grants regulators the power to issue heavy fines or binding orders for non-compliance.
While the company recently implemented mandatory age checks and chat limits for users under nine, these internal safeguards have yet to restore investor confidence.
Market Sentiment And Outlook
Wall Street has reacted by tempering expectations; Wedbush analyst Alicia Reese recently slashed the RBLX price target from $165 to $110.
As the U.S. State Department reportedly prepares to launch its own “freedom.gov” portal to bypass foreign censorship, Roblox remains caught in the crosshairs of a broader global debate over internet regulation and digital safety.
RBLX Underperforms In 2026
While the shares of RBLX have declined by 17.12% year-to-date, the S&P 500 index has risen by 0.46% in the same period. The stock was 12.95% higher over the year.
On Tuesday, the stock closed 7.46% higher at $67.09 apiece, and it was up 0.25% in premarket trade on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
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