Roblox Corporation (RBLX) saw its stock price plummet by 5.04% in pre-market trading on Wednesday, as investors reacted to news of the company implementing stricter safety measures for its young users. The popular gaming platform announced that children will no longer have access to chat features, a move aimed at preventing interactions with unknown adults.
The new safety measures, set to roll out globally, include mandatory age verification for applications using chat features. This process will begin in December for Australia, New Zealand, and the Netherlands, with a worldwide implementation scheduled for January 2026. The decision comes amid growing concerns about children's safety on the platform and follows criticism that Roblox had previously allowed minors to access inappropriate content and communicate with adults.
While these changes demonstrate Roblox's commitment to user safety, they may also impact user engagement and growth, particularly among the platform's younger demographic. With approximately 40% of Roblox's 80 million daily active users being under 13 years old as of 2024, the restrictions could potentially affect the company's user base and, consequently, its revenue streams. Investors appear to be weighing these factors, leading to the significant drop in stock price as they reassess the platform's growth prospects in light of these new restrictions.
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