Roblox Downgraded after $1 B Bookings Cut; March 2027 Puts Yield 15%
RBLX•Piper Sandler downgraded Roblox to Neutral after its stock plunged 18% when management cut full-year bookings by nearly $1 billion, despite reporting 39% revenue growth to $1.44 billion and 132 million daily active users in Q1. Selling March 2027 $30-strike puts yields about 15% annualized premium and a $26.15 effective cost basis.
1. Analyst Downgrade by Piper Sandler
On May 4, Piper Sandler lowered Roblox’s rating from Overweight to Neutral, highlighting limited growth potential due to recent volatility. The move followed an 18% share drop triggered by softer guidance, signaling that analysts expect more restrained upside for the stock.
2. First-Quarter Performance
Roblox delivered 39% year-over-year revenue growth, reaching $1.44 billion, and reported 132 million daily active users in Q1. These metrics underscore continued engagement on the platform despite emerging headwinds.
3. Full-Year Bookings Cut
Management reduced its full-year bookings forecast by nearly $1 billion, attributing the downgrade to slower user acquisition driven by new age verification measures. Bookings track virtual currency purchases and serve as a key indicator of future revenue momentum.
4. March 2027 Put Option Strategy
Some investors are selling long-dated March 2027 $30-strike puts, collecting roughly $385 per contract for a 15% annualized premium. This strategy offers a chance to acquire Roblox shares at an effective $26.15 cost basis or retain income if the stock stays above $30.
