T-Rex 2X Long RBLX Daily Target ETF

$Roblox(RBLX.US)The stock is down for fundamental reasons, not merely because the overall market had a bad week. There are concerns about slowing growth/monetization and the effects of Roblox's age-verification changes, and the stock recently fell to around a two-year low.

The reason is that the latest Q2 results weren't simply a market panic. Roblox reported bookings of about $1.57B, up only 8%, while daily active users still increased 10% to 123M. More importantly, management guided Q3 bookings to $1.58–1.65B, down 14–18%, substantially disappointing investors. The stock consequently had its worst-ever trading day, falling 27%.

luckily my holding is low, just leave it for 10 years lol. Shouldn't trust my son's gaming taste

$Roblox(RBLX.US) | Benchmark 𝗱𝗼𝘄𝗻𝗴𝗿𝗮𝗱𝗲𝘀 𝗥𝗼𝗯𝗹𝗼𝘅 𝗖𝗼𝗿𝗽. from Hold to 𝗦𝗲𝗹𝗹, PT $𝟯𝟯, 'Ah Heck, Here We Go Again'

RBLX 2Q26 First Take: Under tighter kids' safeguards, Roblox stumbled again in Q2. It also took a self-inflicted hit in hopes of a future reset.

1) Self-imposed fixes weighed on engagement: DAU and quarterly hours came in below expectations due to age-rating compliance work in Q1–Q2. Russia and Turkey relaunched post age-gating, adding several million users. But Q2 metrics did not fully capture that recovery.

Beyond age gating, the platform also tweaked its algorithms. That sharply reduced short-term boosts and further pressured near-term results:

(1) Chat restrictions. Younger users cannot use chat, covering roughly one-third of the base.

(2) Gameplay limits. Age verification is required, with unverified accounts restricted to 'Minimal/Mild' titles and no communications, and the platform created dedicated kids accounts.

(3) Recommendation shift. The engine moved from 7-day monetization optimization to 28-day retention, reallocating exposure from high-monetization titles to high-retention, lower-monetization ones. In short, pay-heavy games were de-emphasized while large-DAU titles gained exposure.

On the above, especially the third change, we will keep watching. In theory this should favor healthier long-term growth, but the near-term revenue hit is material, and it is unclear whether de-emphasizing monetization will also sideline high-quality, monetization-heavy indie games. Tracking D28 retention over time should reveal the true effect.

2) Results kept sliding; FY guide withdrawn. Commercial headwinds became more visible in Q2 and, against a tough base, management guided Q3 bookings growth to turn negative.

At the same time, Roblox is lifting developer rev-share (and genres favored by adults, such as shooters, typically carry higher splits than hyper-casual). It is also investing in tech and new features to enhance UX (e.g., Roblox Reality). With revenue under pressure, profits will compress even faster.

Given the magnitude of change this year, management chose to sacrifice near-term monetization and scrapped the full-year outlook. For investors, expectations have deteriorated and visibility has decreased. Even the near-term bottom in results is hard to pin down for now.

3) Buyback underway, but not enough to draw capital. In May, management announced up to $3bn in repurchases, with ~$1bn over 12 months (implied 3% yield). In Q2 it bought back 8.2mn shares for about $380mn, a faster pace that signals a willingness to backstop the stock.

$Roblox(RBLX.US) IS DUMPING ON Q2 EARNINGS🩸

Hmm… Roblox

🚨 After-market buzz!

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: $Roblox(RBLX.US) Roblox launches first share repurchase program worth up to $3 billion

ValueAct Capital Portfolio Updates

Look for top losers each day instead to sell puts as you will get higher premiums due to fear. A good trade today will be RBLX - watch closely and then execute your trade bravely. $Roblox(RBLX.US)

RBLX 1Q26 First Take: 1Q was a bomb, missing badly. Stricter child-protection compliance across markets, a lull in new hits with tough YoY comps, and developer-friendly revenue-share changes all pressured near-term results.

Management slashed guidance far more than the Street had baked in, clouding the high-growth narrative. We believe management has a history of sandbagging and that sharing more economics with developers can pay off long term. But near term the headwinds are exceptional.

1) Tighter rules + fewer hits, engagement down: DAUs and quarterly hours missed expectations, though third-party trackers meant some was anticipated. Since late Mar–early Apr, Indonesia and Brazil followed Russia in rolling out child protections, and with few breakout titles, the company expects user metrics could deteriorate further QoQ.

2) Broad guidance cut: The bigger blow was cutting Q2 and full-year bookings growth to 8–12%. That is a mature-platform pace, and putting the same range on Q2 and FY suggests limited visibility on 2H.

With bookings slowing, revenue and profit guidance also had to come down. The Street did expect a reset, but ~10% growth hardly qualifies as a high-growth platform.

Equating FY bookings growth with Q2 implicitly signals reduced visibility on the outlook. Management opted for a cautious stance.

3) Compliance and developer-friendly pain: The company incurred an extra $57 mn related to navigating compliance and settlement matters in 1Q. To address regulators’ concerns on child protection, Roblox implemented age-tiered accounts, which adds friction to registration/login and can weigh on user scale.

To mitigate user-scale pressure, the new PLUS membership offers users a 10% discount, while developer payouts are calculated on the pre-discount amount, fully incentivizing creators. This increases platform costs, with developer payouts rising to 24% of bookings in Q1 vs. 22–23% last year.

We support the developer-friendly approach from a long-term lens, but the near-term drag is real. Covenant adj. EBITDA was $420 mn, above consensus, at 24% of bookings. $Roblox(RBLX.US) $T-Rex 2X Long RBLX Daily Target ETF(RBLU.US)

$Roblox(RBLX.US) | 𝐑𝐨𝐛𝐥𝐨𝐱: Goldman Sachs reiterates 𝐁𝐮𝐲, cuts 𝐏𝐓 𝐭𝐨 $𝟏𝟐𝟓

Source: Hardik Shah

Cathie Wood added positions in $Tesla(TSLA.US) $Amazon(AMZN.US)