Shares of Roblox Corporation (RBLX) tumbled 5.12% in pre-market trading on Monday, as investors reacted to a bearish analyst report. The stock's significant decline comes amid growing concerns about the company's user engagement and potential manipulation of its discovery algorithm.

TD Cowen analyst Doug Creutz reiterated a Sell rating on Roblox, maintaining a price target of $40.00. The analyst's pessimistic stance appears to be driven by worries surrounding the integrity of Roblox's user activity and potential issues with its discovery algorithm. These concerns have likely contributed to the negative sentiment among investors, leading to the pre-market sell-off.

Despite the downward pressure, it's worth noting that Deutsche Bank has raised its price target for Roblox from $78 to $82. However, this positive adjustment seems to have been overshadowed by the more immediate concerns raised by TD Cowen. As the market opens, investors will be closely watching Roblox's performance to see if the pre-market losses extend into regular trading hours.