Roblox Corporation's stock plummeted 5.05% during intraday trading on Friday, extending recent losses amid continued selling pressure.

The decline follows a severely disappointing first-quarter earnings report where daily active users came in significantly below expectations at 13.2 million versus the consensus estimate of 14.38 million. More critically, management slashed full-year guidance, cutting revenue outlook and reducing bookings expectations by approximately $10 billion.

The company cited age verification and child safety regulations across multiple jurisdictions as the primary catalyst for user attrition, with Q1 losing 12 million users sequentially. Following the report, Piper Sandler downgraded Roblox from overweight to neutral and halved its price target to $50 from $100, while Macquarie also cut its target substantially.