Roblox shares plummet 18% as child safety measures weigh on bookings
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Roblox is facing over 140 federal lawsuits accusing it of failing to prevent child exploitation, and last month settled with Alabama and West Virginia.
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In this article RBLX Follow your favorite stocks CREATE FREE ACCOUNT watch now VIDEO 7:27 07:27 Roblox CEO: We continue to set the global standard for safe and age-appropriate digital engagement Squawk Box Roblox shares plummeted 18% on Friday after the company reported first-quarter earnings as its new child safety measures weighed on bookings. "Part of what we're rolling out with age check, we believe, is the real, right long-term way to build this platform," CEO David Baszucki said Friday on CNBC's " Squawk Box ." In a letter to shareholders , the gaming company wrote that its new age-check feature "restricted on-platform communication for non-age checked users, diluted communication for age-checked users, and slowed new user acquisition," causing greater-than-expected headwinds. In January, the company restricted its chat feature to users who completed its age-check verification . According to the company, 73% of age-checked daily active users on Roblox were under 18, with 35% under 13 as of Jan. 31. To account for the slowed growth, Roblox slashed its full-year 2026 guidance. The company updated its full-year 2026 bookings to fall between $7.33 billion and $7.6 billion. It forecasted 2026 bookings to be almost $1 billion higher last quarter , falling between $8.28 billion and $8.55 billion. Read more CNBC tech news Apple CEO Cook warns of extended memory crunch: 'We'll look at a range of options' Japan Airlines to trial humanoid robots at Tokyo's Haneda airport to load baggage Tech stocks post best month since start of Covid pandemic in 2020 Intel's stock more than doubles in April for best month in chipmaker's 55 years on Nasdaq "While our aggressive push to enhance safety lowers our expectations for topline growth in 2026, it makes our platform fundamentally better and amplifies the long-term growth potential of Roblox through more effective content targeting, tailored communication experiences, and improved community sentiment," the company wrote in its lett...
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