Roblox Corporation (RBLX) stock plummeted 5.26% intraday on Thursday, as the company faced mounting regulatory scrutiny and a downward revision of its price target by a prominent analyst firm.
The sharp decline coincides with reports that Roblox has not yet complied with Indonesia's stringent child protection regulations, known as PP Tunas. The Indonesian government highlighted that the platform's current measures are insufficient, particularly regarding potential interactions with foreign users, and has not declared Roblox compliant with the new rules.
Further adding to investor concerns, Roblox is also subject to a regulatory inquiry in Australia regarding its child safety measures. Simultaneously, Wedbush Securities lowered its price target on Roblox to $90 from $110, though it maintained an Outperform rating on the stock.
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