Video game company Roblox (NASDAQ:RBLX) is rapidly approaching its 52-week low. The stock was down once more in Thursday afternoon trading, which primarily traces back to disappointing bookings for November (released on December 15) that left investors looking for the exit. The news was enough to draw the stock down over 25% in a little over a week as both investors and analysts reconsidered their positions.
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Worse, even when Roblox starts showing some life, it’s for all the wrong reasons. Just recently, a single mother named Kayla Howard discovered that her seven-year-old son recently spent $897 on Roblox. That represented all the money Howard had and then some, leaving Howard facing overdraft charges. The worst part? Howard has three other kids, and the seven-year-old in question has autism.
Google Play (NASDAQ:GOOG) refunded Howard $10, and so far, a claim to Roblox has gone unanswered. In addition, analysts are beginning to turn as well. Just days ago, Wolfe Research analyst Gal Munda lowered his rating to Sell.
Overall, Wall Street analysts have a consensus price target of $36.56 on RBLX stock, implying 41% upside potential, as indicated by the graphic above.
