Benchmark analyst Mike Hickey lowered the firm’s price target on Roblox to $45 from $70 and reiterates a Sell rating on the shares following the company’s Q4 results. The stock in midday trading is down 25% to $54.58. The results “disappointed” with both audience size and player engagement declining in key geographies and demographics, Hickey tells investors in a research note. The analyst anticipates “lingering weakness” in the U.S. and Canada, and in Roblox’s core under-13 player group, as “engagement normalizes and play experiences decay.” He’s concerned management’s desire to drive growth through older demographic and brand advertisements “could ultimately create a toxic community experience and further open opportunities for user abuse.” In addition, parents may allocate less capital to Roblox as inflationary pressures impact family discretionary budgets, says Hickey.