Here’s Sands Capital Technology Innovators Fund’s Select Engagement Report on Roblox (RBLX)

Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) develops and operates an immersive platform for connection and communication. The one-month return of Roblox Corporation (NYSE:RBLX) was 22.67%, and its shares have appreciated by 155.32% over the past 52 weeks. On May 28, 2025, Roblox Corporation (NYSE:RBLX) closed at $84.64 per share, with a market capitalization of $57.41 billion.

Sands Capital Technology Innovators Fund stated the following regarding Roblox Corporation (NYSE:RBLX) in its Q1 2025 investor letter:

“Business: Roblox Corporation (NYSE:RBLX) is a leading gaming development and distribution platform. Key issues: Product safety and impact and health and safety.

As a leading platform for user-generated content with a significant user base of children under the age of 13, Roblox plays a pivotal role in defining safety and civility standards for online interactions. While content moderation challenges are not unique to Roblox, its scale and user demographics demand heightened scrutiny and accountability.

Before initiating a position in the company, we sought to understand how the company addresses online safety, fosters trust, and leverages technology to create a secure environment for its users. By assessing Roblox’s initiatives and progress, we aimed to ensure alignment with best practices in safety and compliance while safeguarding its long-term reputation and stakeholder trust…” (Click here to read the full text)

Roblox Corporation (RBLX): Among Billionaire Mason Morfit’s Stock Picks with Highest Upside Potential

A person taking lessons through Roblox Education, expanding their knowledge and skills.

Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the first quarter, which was 61 in the previous quarter. In Q1 2025, Roblox Corporation (NYSE:RBLX) reported revenue of $1.035 billion, that was up 29% year-on-year. While we acknowledge the potential of Roblox Corporation (NYSE:RBLX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Roblox Corporation (NYSE:RBLX) and shared billionaire Mason Morfit’s stock picks with highest upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.