When it comes to online gaming, Matthew Thornton has decreased his price estimate for the stock to $29 from $36 on Friday.

Roblox RBLX has gained 8.83 percent (NYSE: RBLX ) “May measures were dismal,” he noted, adding that the firm now ranks last in his sector coverage on valuation, stock volatility, and business visibility.

Roblox shares rose 1.4 percent in Friday trade to $25.03.

Roblox said earlier this week that reservations for May would be down 9 to 11 percent year over year, with a currency rate headwind of 4 percentage points. Growth in daily active users was also up 17 percent, down from 23 percent in the previous month’s period.

While Thornton feels Roblox has an early lead in the metaverse possibilities, he believes that META (Meta Platforms) might pose a threat due to the technological giant’s more substantial financial resources.

Virtual reality, or the “metaverse,” has become a hot topic in the IT industry, with several businesses investing heavily in the concept. Over the last three years, Meta, Facebook’s parent firm, has squandered more than $20 billion on initiatives related to the metaverse.

It goes beyond Meta. According to the analyst, Epic Games, the producer of Fortnite and the Unreal engine platform, is a problem for Roblox. As of April, Sony and KIRKBI committed $1 billion each to Epic Games to speed up the development of the metaverse.

Requests for comment from Roblox on the Trust report were not immediately returned. Following a string of poor growth reports, its stock has fallen 75% this year.

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