Investors hate Roblox’ new direction – but a reversal may be impossible | Opinion

Investors hate Roblox’ new direction – but a reversal may be impossible | Opinion It was valued like a tech firm, not a game maker – so it’s no surprise that Roblox shares tanked when it started weaning itself off some of the tech sector’s reckless strategies When Epic Games announced major layoffs back in March, it become clear that Fortnite – once regarded as holding a near-unassailable market position – was facing a serious slump, if not a lasting decline. One common response was to claim that the dream of the ever-evolving metaverse-like “forever game” had not died; it now rode on the shoulders of Roblox, whose meteoric growth with younger demographics likely explained much of Fortnite’s downturn. Roblox stock had a massive run-up from mid-2024, reaching a valuation in the $100 billion range around a year ago – making it one of, if not the, most valuable gaming businesses in the world. Read this next - US Senate to investigate Roblox following claims it "prioritises revenue and engagement" over child safety - UKIE-backed Digital Schoolhouse partners with Roblox to provide suite of tools for students to develop Roblox games in-class - Roblox shares fall 70% following lower-than-expected monetisation during Q2