1021 ET - Roblox could see engagement headwinds, slowing bookings growth and compressing margins in 2026 and as a result, the shares have little upside, say JPMorgan analysts, who downgrade the stock to neutral from overweight. The facial age estimation rollout in January plus a ban in Russia could each drag down engagement, and while the analysts say Roblox should deliver 20% bookings growth next year, they don't see much upside "unless new viral hits emerge or advertising ramps, which we're not counting on." Meanwhile, higher developer expense will weigh on margins. "We don't think the company can grow its way out of margin compression in 2026, " the analysts say. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

December 12, 2025 10:21 ET (15:21 GMT)

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