Roblox shares tumble 70% as growth stalls and malware threat looms

Roblox Corp. saw its market value shrink by about $70 billion in the past year, with the share price falling from a high of $150.59 to $41.76 – a drop of roughly 72%. The decline follows a slowdown in user engagement: daily active users fell to 123 million, down from a peak of 152 million, and second‑quarter bookings grew only 8% year‑over‑year, far below analysts’ expectations.

Morningstar analysts cut their fair‑value estimate for the stock by $5‑$10, citing weaker near‑term bookings and slower margin expansion. The company’s CEO, David Baszucki, announced a shift in the recommendation algorithm to favor longer‑lasting experiences, hoping to improve retention and spending. At the same time, security researchers identified a malware campaign masquerading as the “Xeno Roblox” script executor, which has been stealing accounts, personal data and even webcam access from players, prompting warnings to avoid unofficial cheats.

The twin pressures of a faltering growth engine and heightened security risks have left investors and users wary of Roblox’s future performance.