Analyst Ratings January 27, 2026

TD Cowen Sticks With Sell on Roblox After Parent Survey Shows Rising Usage Limits

January 2026 survey finds more parents limiting screen time and spending on Roblox; stock trades modestly above Cowen’s $70 target ahead of Feb. 5 earnings

By Hana Yamamoto RBLX
TD Cowen Sticks With Sell on Roblox After Parent Survey Shows Rising Usage Limits
RBLX

TD Cowen has reaffirmed a Sell rating and a $70 price target on Roblox Corp. after its January 2026 parent survey showed an increase in parents imposing time and spending limits on the platform. The research house warned these restrictions could pressure engagement metrics. Roblox shares are trading near $72.53, and the company is due to report earnings on February 5, 2026.

Key Points

  • TD Cowen reiterated a Sell rating and $70 price target on Roblox after a January 2026 parent survey showed more parents imposing time and spending limits on the platform.
  • The survey is Cowen’s third in 14 months and suggests restrictions are motivated by a desire to reduce children’s time and spending rather than safety concerns, which Cowen says could affect engagement metrics.
  • Analyst views are mixed: price targets range from $65 to $180 with notable firms updating ratings and targets - implications span the digital gaming and consumer internet sectors.

Key takeaway - TD Cowen has reiterated a Sell rating and a $70.00 price target on Roblox Corp. (NYSE:RBLX) following a parent survey conducted in January 2026. With Roblox shares changing hands at $72.53, Cowen’s valuation implies a small downside from current market levels.

The Cowen survey, the firm’s third on parental attitudes over the past 14 months, shows a rising proportion of parents who report restricting their children’s time on Roblox relative to previous polls taken in December 2024 and May 2025. According to Cowen, parents’ motivations remain rooted in “a general desire to see their children spend less time/money on the platform, rather than specific concerns about safety.”

TD Cowen highlighted that these self-imposed limits could translate into lower user engagement metrics, a core performance signal for the online gaming and user-generated content platform. The research note frames the restrictions as a potential headwind to how users interact with the service, with direct relevance to engagement and monetization measures.

Market data referenced by InvestingPro shows that Roblox shares declined 6.13% over the last week, a move the research platform flagged as reflecting market unease. Cowen’s reiterated Sell comes as Roblox prepares to report quarterly results on February 5, 2026, nine days from the date of Cowen’s release.


Analyst landscape - Despite Cowen’s bearish stance, the broader analyst community presents a range of views, with a moderate buy consensus and price targets stretching from $65 to $180. Several recent broker notes and ratings cited by the research roundup include:

  • Piper Sandler trimmed a price target to $125 from $180 while keeping an Overweight rating, citing a need for more conservative assumptions starting in the latter half of 2027.
  • Goldman Sachs reiterated a Buy rating with a $180 price target, calling out potential upside tied to artificial intelligence initiatives intended to aid content discovery and developer tooling.
  • JPMorgan retained a Neutral rating and a $100 price target, noting a decline in peak concurrent users from 26 million to 23 million as a point of weakness in platform engagement.
  • Wolfe reported a 10.6% weekly decline in concurrent users and observed that the first quarter-to-date average indicates a slower pace of growth compared with the prior quarter.
  • Oppenheimer continued to rate Roblox as Outperform with a $150 price target, reporting little observed impact from the recent age verification rollout on monetization or player engagement.

These divergent analyst views underscore a mixed outlook for Roblox, with firms weighing potential product- and AI-driven upside against signs of softer user engagement and parental-imposed limitations.


Research and investor tools - The coverage referenced InvestingPro data and noted that its Pro Research Report contains additional analysis, including over 10 tips on the company’s financial and valuation metrics. Investors and analysts often use such tools to cross-check engagement trends, monetization dynamics, and near-term catalysts ahead of earnings.

Context and next steps - The January 2026 parent survey is the third conducted by TD Cowen within a 14-month span, offering longitudinal data on how parents view the platform. Cowen’s read of the survey results feeds directly into its assessment of user engagement risk, a central variable for forecasting monetization and long-term growth.

Roblox’s impending earnings report, scheduled for February 5, 2026, will likely be watched closely for any commentary on user trends, monetization resilience, and the company’s response to parental limits. Until then, analysts remain split, and the market will be tracking metrics such as concurrent users and engagement trends referenced in recent research notes.

Risks

  • Increased parental restrictions could reduce user engagement and monetization on the Roblox platform, impacting the digital gaming and consumer internet sectors.
  • Divergent analyst forecasts and a broad range of price targets signal uncertainty about Roblox’s near- and medium-term growth trajectory, affecting investor sentiment in technology and entertainment equities.
  • Recent reports of declining peak concurrent users and weekly drops in concurrent users point to possible deceleration in platform usage ahead of the company’s February 5, 2026 earnings report.

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