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Roblox CEO issues stark forecast on 2026 bookings
Roblox had a strong first quarter on paper. But what CEO David Baszucki said about the rest of the year sent investors running for the exit.The gaming platform postedfirst-quarter bookings of $1.7 billion, up 43% year over year. Revenue came in at $1.4 billion, also up 39% year over year. By most measures, that’s a healthy quarter.But the guidance told a different story. And now investors are asking what went wrong and how long it will last.Roblox’s big safety bet is costing it usersThe trouble started in January, when Roblox (RBLX) became the first major online gaming platform to require age verification just to access its chat feature. The move was bold, but the fallout was bigger than expected.According to the company’s shareholder letter, the age-check requirement “restricted on-platform communication for non-age checked users, diluted communication for age-checked users, and slowed new user acquisition.” That’s a triple hit to the top of the funnel.As of the end of Q1, only 51% of global daily active users (DAUs) had completed the age check. In the U.S., that number was 65%.Here’s the problem. Users who haven’t age-checked can no longer chat. And users who have age-checked have fewer people to talk to because their friends may not have completed the process yet. That reduced communication activity dampened word-of-mouth and dragged down app store ratings, which Roblox says cut into organic sign-ups.”Part of what we’re rolling out with age check, we believe, is the real, right long-term way to build this platform,” Baszucki said on CNBC’s “Squawk Box.”
Roblox CEO David Baszucki is bullish on long-term growth.Ngan/AFP via Getty Images
Roblox’s nearly $1 billion guidance cutThe numbers are hard to ignore. Roblox now expects full-year 2026 bookings to land between $7.33 billion and $7.6 billion, according to CNBC.Just last quarter, it had projected bookings of $8.28 billion to $8.55 billion. That’s nearly $1 billion wiped from the forecast in a single quarter, CNBC confirmed.Full-year revenue guidance was also trimmed to 20%-25% growth, down from an earlier, more optimistic projection.Roblox shares fell 18% following the earnings report, CNBC noted, a sharp reaction that signals how much the market had priced in stronger growth.Related: Meta is shutting down its VR metaverseChief Financial Officer Naveen Chopra said the revised outlook reflects what the company is now calling “second order impacts” of the safety rollout. These include reduced viral sharing, weaker app store sentiment, and slower new user acquisition.DAUs came in at 132 million in Q1, up 35% year over year. But that growth rate has already slowed meaningfully from the roughly 70% clip seen in the prior two quarters.Roblox expands its portfolioRoblox isn’t sitting still. The company is rolling out several features designed to revive communication and user growth.Global chat is already in testing and allows players across different servers in the same game to talk in a single shared room, boosting the sense of activity, even when fewer users have age-checked. Trending Tech Stocks:Oracle adds $100B in market cap on major announcementJPMorgan has stark message on Qualcomm stockMorgan Stanley has a message for ServiceNow investorsPreset messages are also coming soon, letting players coordinate gameplay without needing full chat access.Chopra said Roblox expects DAUs to contract further between Q1 and Q2, then return to sequential growth in Q3. That confidence rests on three things: seasonal tailwinds, planned product updates, and the upcoming launch of age-based accounts in June.On the monetization side, Roblox is sweetening the deal for developers building content for adult users. Starting June 8, creators making games for age-verified users 18 and older in the U.S. will earn 37.8% of in-game revenue, up from 26.6%. The company is also working with established game studios to bring popular mobile titles onto the Roblox platform.Baszucki framed all of this as part of a deliberate, long-term strategy. The platform has more than 400 artificial intelligence models running more than 1.5 million inferences per second, powering everything from safety filters to content discovery. It is also rolling out a photorealistic gaming initiative called Roblox Reality, aimed at attracting older, higher-spending users.The platform’s 18-to-34 age group already grew more than 50% year over year in the U.S. in Q1 — faster than any other cohort. And adult users monetize at roughly 1.5 times the rate of users under 18.Is RBLX stock undervalued?Down 66% from all-time highs, Roblox stock is valued at a market cap of $34 billion. Analysts forecast RBLX stock to expand its free cash flow from $1.35 billion in 2025 to $3.80 billion in 2030. If Roblox is priced at 25x forward FCF, which is below its current multiple of 33x, it could surge by over 150% over the next four years. Out of the 25 analysts covering Roblox stock, 14 recommend “buy,” and 11 recommend “hold.” The average RBLX stock price target is $90.40, indicating 90% upside from current levels. The long-term thesis for Roblox remains intact. Getting there, though, will cost Roblox a painful year of transition.Related: Bank of America drops bold call on Roblox, sees massive upside
The ‘High-Yield Lazy Account’: This Set-It-and-Forget-It Move Can Help Boost Your Savings
Building long-term wealth requires saving and investing. While it’s important to put some of your money in investments that have the potential to generate high returns, you should also keep some cash on hand to cover emergencies and short-term needs and wants.
But that cash doesn’t have to sit idly in a low-interest traditional savings account. A high-yield savings account (HYSA) lets your money grow while still keeping it easily accessible.
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What a ‘high-yield lazy account’ actually is
HYSAs offer higher annual percentage yields (APYs) than traditional savings accounts. Many are currently offering APYs around 4%. They are protected like traditional savings accounts for up to $250,000 per depositor and per bank for each ownership category, as long as the bank or credit union is insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). They often come with low or no fees, and are easy to maintain — hence the “lazy” nickname here.
You can open a HYSA and enable automatic transfers from your checking account so you don’t even have to think about obtaining that extra yield.
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Why it beats what many savers are doing
HYSAs generally don’t come with added risks compared to traditional savings accounts, so there’s essentially no downside to storing your money in them and getting a higher APY.
Let’s compare storing $10,000 in a traditional savings account offering 0.38% APY and in a HYSA offering 4%. In the traditional savings account, you’d generate just $38 of interest for the year. But in the HYSA, you’d get $400.
The only challenge with these accounts can be finding them, since your bank may not offer a HYSA. You’re more likely to find them with online banks that don’t have to pay to run brick-and-mortar stores. Read Money’s list of the best high-yield savings accounts that combine strong yields, low fees and reasonable minimums to get started.
How to set it up without overthinking it
When looking for a HYSA, you should narrow your focus on accounts with no monthly fees, a competitive APY, FDIC or NCUA insurance and no restrictive balance requirements. Once you set up this account, link it to your checking account so you can enable automatic transfers.
Although a high-yield savings account is a useful resource, it does not replace investing in long-term assets like stocks. And keep in mind that HYSAs have variable interest rates, so you can’t rely on the posted APY forever. Banks can lower APYs at any time based on various factors, such as Federal Reserve rate changes.
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Here’s what’s worth streaming in May 2026 on Netflix, Hulu, HBO Max and more
Netflix’s ‘Lord of the Flies,’ Apple’s ‘Star City’ and a surprise episode of Hulu’s ‘The Bear’ are among the highlights of the month
This narrow shipping lane is how Trump now wants oil tankers to navigate the Strait of Hormuz
If the U.S. succeeds in shepherding more vesses out of the strait safely, hundreds of ships still stuck on either side of the strait, including massive oil tankers, would find their way to markets, taking off some of the pressure that has led global crude prices rise more than 50%.
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