EU DSA Probe and 46% Six-Month Drop Trigger $110 Price Target Cut
Roblox’s stock momentum percentile dropped to 12.92 this week after shares fell 17.1% year-to-date and 46.3% over six months. The Netherlands ACM opened a Digital Services Act investigation into the platform’s protection of minors, prompting Wedbush to cut its price target from $165 to $110.
1. Momentum Decline and Stock Performance
Roblox’s momentum percentile plunged to 12.92 this week as shares declined 17.1% year-to-date and 46.3% over the past six months across short, medium and long-term horizons.
2. EU Digital Services Act Investigation
The Netherlands Authority for Consumers and Markets launched a formal probe under the EU Digital Services Act to assess whether Roblox adequately shields minors from harmful content and unsafe interactions, exposing the company to potential fines or binding orders.
3. Company Safeguards and Analyst Reaction
Roblox introduced mandatory age verification and chat limits for users under nine, but these measures failed to restore confidence, leading Wedbush analyst Alicia Reese to lower her price target from $165 to $110.