New reports suggest that video game platform Roblox (RBLX) is having a serious problem with pedophiles. Even Roblox itself suggests there’s quite a problem here, but just how well it’s responding is at issue. Investors aren’t much concerned, and shares were up fractionally in the closing minutes of Tuesday’s trading.
The Roblox report spelled out the damages: in 2024, Roblox reported 13,316 instances of “child exploitation” to authorities and responded to a separate 1,300 requests for details on “predatory players.” That sounds pretty impressive, but close to two dozen people have actually been arrested for abusing victims that they met on Roblox. And that’s over the last six years.
Yet, Roblox is clearly putting in the work to impact what it can: the firm reportedly filters a whopping 50,000 chat messages per second and keeps 3,000 human moderators on hand along with artificial intelligence (AI) systems to help keep things running clean. Despite this, Roblox staffers report feeling overwhelmed routinely, which isn’t a surprise given the scope of things. At 50,000 chat messages per second and 3,000 moderators, even if the AI handles half of the total, you’re still talking close to eight messages per second per staffer.
Another Draw for the Kids
Meanwhile, Roblox is planning an event to draw even more interest. Coinciding with the Paris Olympics, Roblox is bringing out “The Team USA Ultimate Obby.” With Roblox characters modeled after Olympic athletes, the event provides access to a major obstacle course along with a set of other activities and means to connect.
The Peacock Fan Zone, for example, will offer access to video highlights, a watch party, and even a way to get on camera during game broadcasts. There’s also a section called the Team USA House, which allows visitors to meet the athletes themselves, an attraction sure to draw interest.
What Is the Future of Roblox Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RBLX stock based on 15 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 3.72% rally in its share price over the past year, the average RBLX price target of $42.45 per share implies 3.44% upside potential.
