<div id="readability-page-1">Money Markets Slowing Growth And Lawsuits: Can Roblox Stock Fall 40%?  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Dec 17, 2025, 10:28am EST Dec 17, 2025, 11:06am EST  SYDNEY, AUSTRALIA - DECEMBER 07: A 7-year-old teenage boy looks at a photo screen with Roblox, a social media networking app that will not be age-restricted, is opened on December 07, 2025 in Sydney, Australia. (Photo by George Chan/Getty Images) Getty Images Over the past 21 trading days, Roblox (RBLX) has seen its market value erode by 14.5%. While the dip reflects immediate anxieties regarding slowing bookings, it also underscores deeper anxieties about the company’s legal standing. Roblox is grappling with a series of high-stakes lawsuits from both private citizens and state governments. These cases allege systemic failures in child safety, claiming the platform has allowed predators to groom and exploit young users—a narrative that threatens to overshadow the company’s growth potential.  This sharp downturn raises a critical question: is this a temporary setback or a sign of a fundamental shift in the company’s long-term outlook?  Before evaluating its downturn resilience, let’s examine Roblox's current situation.  Size: Roblox is a $61 billion company with $4.5 billion in revenue, currently trading at $87.44.  Fundamentals: In the past 12 months, revenue grew by 32.7%, with an operating margin of -25.0%.  Liquidity: The company has a Debt to Equity ratio of 0.02 and a Cash to Assets ratio of 0.33.  Valuation: Roblox is currently trading at a P/S multiple of 21.6  Historically, it has returned (median) -4.5% within a year after experiencing sharp declines since 2010. See RBLX Dip Buy Analysis.  These indicators suggest a strong, coupled with a strong valuation, rendering the stock strong. For further information, refer to Buy or Sell RBLX Stock .  This leads us to a crucial factor for investors concerned about this drop: how resilient is RBLX stock if markets decline? This is where our downturn resilience framework is applicable. Suppose RBLX stock falls another 20-30% to $61 — can investors remain confident? It turns out, the stock has performed significantly worse than the S&amp;P 500 index during the recent economic downturn, based on (a) how much the stock declined and (b) how quickly it rebounded. Below, we analyze the recent downturn in greater detail.  2022 Inflation Shock RBLX stock declined by 82.8% from a peak of $134.72 on 19 November 2021 to $23.19 on 10 May 2022, compared to a peak-to-trough decrease of 25.4% for the S&amp;P 500.  Nevertheless, the stock completely recovered to its pre-crisis peak by 31 July 2025.  Since then, the stock rose to a peak of $141.56 on 29 September 2025 and is currently priced at $87.44.  RBLX Stock Performance During The 2022 Inflation Shock Trefis MORE FOR YOU Feeling anxious about RBLX stock? Consider adopting a portfolio strategy.  Move Beyond Single Stocks With A Multi-Asset Portfolio Stock prices fluctuate significantly; however, bonds, commodities, and other assets can help stabilize returns. A multi-asset portfolio offers steadier returns and mitigates single market risk.  The asset allocation approach of Trefis’ Boston-based wealth management partner delivered positive returns during the 2008-09 financial crisis when the S&amp;P lost over 40%. Their current strategy comprises Trefis’ High Quality Portfolio , which has consistently outperformed its benchmark, covering all three indices — the S&amp;P 500, S&amp;P mid-cap, and Russell 2000.  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

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<p>Roblox is facing slowing growth, lawsuits, and valuation risks, leading analysts to warn that the stock could drop by 40%. The company has seen a 14.5% decline in market value over the past 21 trading days. Roblox is dealing with high-stakes lawsuits alleging systemic failures in child safety. Despite its $61 billion valuation and $4.5 billion revenue, the company's stock has historically underperformed during economic downturns.</p>