Here’s What Fueled Roblox’s (RBLX) Outsized Growth

3 days ago 7

Soumya Eswaran

Thu, November 27, 2025 astatine 6:57 AM CST 3 min read

Sands Capital, an concern absorption company, released its “Sands Capital Select Growth Strategy” Q3 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. large-cap maturation equities continued to retrieve from a crisp sell-off successful aboriginal April. Strong firm earnings, capitalist enthusiasm astir artificial quality (AI), and increasing expectations for Federal Reserve argumentation easing drove the robust gains. The portfolio returned 6.3% (net) successful the quarter, compared to the benchmark's 10.5% gain. You tin cheque the fund’s apical 5 holdings to cognize much astir its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Sands Capital Select Growth Strategy highlighted stocks specified arsenic Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) is an immersive level for transportation and communication. The one-month instrumentality of Roblox Corporation (NYSE:RBLX) was -30.66%, and its shares gained 87.83% of their worth implicit the past 52 weeks. On November 26, 2025, Roblox Corporation (NYSE:RBLX) banal closed astatine $92.73 per share, with a marketplace capitalization of $65.09 billion.

Sands Capital Select Growth Strategy stated the pursuing regarding Roblox Corporation (NYSE:RBLX) successful its 3rd 4th 2025 capitalist letter:

"Roblox Corporation (NYSE:RBLX is simply a starring gaming improvement and organisation platform. A viral plot simulation game, Grow a Garden, fueled outsized maturation successful the quarter, reaching much than 20 cardinal concurrent users—far supra the astir 1 cardinal mean for different fashionable experiences. This surge helped second-quarter bookings accelerate 51 percent twelvemonth implicit year, supported by regular progressive users and full hours rising 41 percent. Grow a Garden reflects a broader structural displacement connected Roblox: caller experiences are gaining unprecedented traction. We presumption this inclination arsenic healthier than the platform’s past reliance connected a fewer mainstay franchises, and it underscores a defining spot of Roblox—the frictionless instauration of user-generated contented paired with planetary distribution."

Roblox Corporation (NYSE:RBLX) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge money portfolios held Roblox Corporation (NYSE:RBLX) astatine the extremity of the 2nd quarter, which was 68 successful the erstwhile quarter. In Q3 2025, Roblox Corporation’s (NYSE:RBLX) gross grew 48% year-on-year to $1.36 billion. While we admit the imaginable of Roblox Corporation (NYSE:RBLX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.