On September 26, Roblox Corporation fell 5.01% in regular trading, trading at $46.385 per share with turnover of $146 million. The decline came as Meta unveiled AI-powered game creation tools that pose a direct competitive threat to Roblox's core user-generated content platform.

At its annual Connect conference, Meta launched Horizon Create and Horizon Studio, two tools built on the Meta Horizon Engine. Users can generate fully functional 2D/3D games — complete with level design and multiplayer functionality — using only text prompts, with distribution directly through Facebook and Instagram. Horizon Create is a standalone mobile app enabling on-the-go creation, while Horizon Studio targets web-based development. The tools squarely overlap with Roblox's creator economy model, leveraging Meta's billions of social platform users as a built-in distribution advantage.

Following the announcement, Meta shares rose as much as 4.5%, while Roblox, Unity Software, and AppLovin all faced broad selling pressure. Roblox had already been recovering from a steep post-earnings selloff in late July, when Q2 bookings and daily active users missed expectations, prompting multiple analyst downgrades.

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