5 Cheap Gaming Stocks to Buy Now

3. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 38 

Share Price as of December 5: $33.49    

Roblox Corporation (NYSE:RBLX) develops and operates an online entertainment platform. On November 9, Roblox posted earnings for the third quarter of 2022, reporting losses per share of $0.50, missing market estimates by $0.16. The revenue over the period was $701.72 million, up 10.0% compared to the revenue over the same period last year and beating market estimates by $12.47 million.

On November 21, Citi analyst Jason Bazinet maintained a Buy rating on Roblox Corporation (NYSE:RBLX) stock and lowered the price target to $48 from $55, noting that the updated model on the firm factored in third-quarter results.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Roblox Corporation (NYSE:RBLX) with 10.6 million shares worth more than $380.7 million.

In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:

“Roblox Corporation (NYSE:RBLX) got significantly more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt-in”.