Roblox shares plunge 30% as algorithm overhaul triggers bookings drop

Roblox algorithm change bookings decline stock plunge EU regulation

The European Commission has classified Roblox as a Very Large Online Platform under the EU Digital Services Act, requiring stricter compliance on content, advertising and data sharing. At the same time, Roblox announced a redesign of its recommendation algorithm to favor games that drive long‑term player retention rather than short‑term spending. The change contributed to second‑quarter 2026 bookings of $1.56 billion, at the low end of the company’s guidance, and revenue of $1.47 billion, missing analyst expectations of roughly $1.59 billion. Daily active users rose 10 % year‑on‑year to 123 million, but per‑hour monetisation fell, especially among users under age 13.

Following the earnings release, Roblox’s stock fell between 27 % and 30 % on July 31, marking its worst one‑day decline and erasing more than $10 billion from its market value. The company also withdrew its full‑year bookings outlook and faced renewed scrutiny over its age‑verification and premium‑subscription pushes. Analysts cut price targets, with several firms lowering their forecasts to $33‑$40 per share. The combined regulatory pressure, algorithm shift and weaker monetisation have sparked concerns about Roblox’s growth trajectory.

Roblox’s leadership, including CEO David Baszucki and CFO Naveen Chopra, said the algorithm change is intended to improve long‑term engagement and that the company remains financially strong, holding $6.1 billion in cash and generating free cash flow of $294 million.

Entities: David Baszucki · European Commission · Naveen Chopra · Roblox Corp · Roblox Corporation · Robux

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 6 SOURCES] Roblox reported second‑quarter 2026 revenue of $1.47 billion, below analyst consensus of about $1.59 billion. (Roblox Q2 Earnings Call Highlights)
[● 6 SOURCES] Roblox’s daily active users reached 123 million, up 10 % year‑on‑year. (Roblox Q2 Earnings Call Highlights)
[● 4 SOURCES] Roblox introduced age‑based accounts and expanded age‑verification tools in 2024. (Roblox set for worst one‑day drop as discovery changes hurt in‑app spending)
[● 4 SOURCES] Roblox withdrew its full‑year bookings outlook for 2026. (Roblox set for worst one‑day drop as discovery changes hurt in‑app spending)
[○ 1 SOURCE] The European Commission designated Roblox as a Very Large Online Platform under the EU Digital Services Act. (Roblox: EU Label, Loot Box Controversy, and Mobile Revamp)
[● 5 SOURCES] Roblox shares fell 27 %–30 % on July 31, its worst one‑day decline, erasing more than $10 billion in market value. (Roblox set for worst one‑day drop as discovery changes hurt in‑app spending)
[● 4 SOURCES] Roblox changed its recommendation algorithm to prioritize games that improve long‑term player retention over short‑term monetisation. (Roblox set for worst one‑day drop as discovery changes hurt in‑app spending)
[● 6 SOURCES] Roblox reported second‑quarter 2026 bookings of $1.56 billion, at the low end of its guidance. (Roblox Q2 Earnings Call Highlights)