Roblox Corporation (RBLX) shares plummeted 5.15% during intraday trading on Friday, as investor sentiment turned negative following analyst concerns about the platform's future challenges.

According to a Wedbush note published pre-market, Roblox's discovery engine will face a "real test" when artificial intelligence-made games flood the platform. The note highlighted declining weekly concurrent and daily active users growth rates, indicating that incremental declines reflect tougher year-ago comparisons rather than fresh deterioration in underlying usage. While the note also mentioned potential benefits from Roblox's new AI tool Build, the primary focus was on the challenges ahead for user retention and engagement.

Separately, Jefferies raised its price target on Roblox to $50 from $46, providing a contrasting positive view. However, the market appeared to weigh the concerns about user growth and platform challenges more heavily, leading to the significant intraday decline.