Roblox stock moved modestly higher on Tuesday as a high-profile YouTuber known for confronting online predators was banned from the platform. Schlep, who has built a YouTube following of more than 600,000, says he was issued a cease-and-desist letter and banned for alleged violations of Roblox’s Terms of Use and Community Standards, though he maintains he did nothing wrong.
Schlep has publicly claimed that his reporting on predator activity within Roblox has led to multiple arrests. He also said that Roblox has banned every account he has created since he was eight years old, noting that many of those accounts were used to contact potential predators. He has previously claimed personal experiences of grooming on the platform by a developer and has said his mother reported the issue to Roblox, but that the company did not remove the developer for several years and only offered crisis resources.
Roblox has faced ongoing safety challenges, including a lawsuit from parents alleging the platform did not do enough to protect their 10-year-old daughter from a predator. The suit also named Discord, as conversations that began on Roblox allegedly moved to the messaging service. The release notes this is the seventh such lawsuit filed against Roblox.
In market action, Roblox stock rose 0.06% on Tuesday, continuing a strong year with a 126.03% rally so far and a 237.39% gain over the past 12 months. Wall Street analysts remain broadly bullish on the stock, with a consensus rating of Moderate Buy based on 16 Buy, four Hold, and one Sell in the last three months. The average price target stands at $142.10, suggesting about an 8.6% upside from current levels.
What this means for investors
– The controversy surrounding safety and user protection continues to be a headline driver for Roblox, alongside the company’s ongoing efforts to address abuse and groomer activity on the platform.
– Roblox’s growth trajectory and monetization strategy appear to be resonating with investors, as reflected in the sizable year-to-date gains and a dominant investor sentiment among analysts.
– Ongoing legal challenges and regulatory scrutiny could influence sentiment and impact near-term volatility, even as the company emphasizes safety enhancements and community governance.
Summary
Roblox faced a high-profile clash between a YouTuber accusing the platform of insufficient action against predators and questions surrounding user safety in the context of ongoing legal challenges. Despite this, the stock has shown impressive momentum in 2024-2025, with a strong year-to-date rally and a generally optimistic analyst outlook, though investors should stay attentive to safety improvements and court developments that could shape the stock’s risk-reward profile.
Additional comments
– Roblox’s safety initiatives, moderation improvements, and partnerships to curb predator activity will be critical to sustaining user trust and long-term growth.
– Investors may want to monitor upcoming earnings, user engagement metrics, and any settlements or rulings related to the lawsuits, as these factors could shift sentiment.
Positive note
If Roblox can continue advancing its safety measures while expanding its user base and creator ecosystem, the platform could remain well-positioned for renewed engagement and monetization opportunities, supporting continued stock resilience even amid controversy.