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

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. large-cap growth equities continued to recover from a sharp sell-off in early April. Strong corporate earnings, investor enthusiasm around artificial intelligence (AI), and growing expectations for Federal Reserve policy easing drove the robust gains. The portfolio returned 6.3% (net) in the quarter, compared to the benchmark’s 10.5% gain. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Select Growth Strategy highlighted stocks such as Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) is an immersive platform for connection and communication. The one-month return of Roblox Corporation (NYSE:RBLX) was -30.66%, and its shares gained 87.83% of their value over the last 52 weeks. On November 26, 2025, Roblox Corporation (NYSE:RBLX) stock closed at $92.73 per share, with a market capitalization of $65.09 billion.

Sands Capital Select Growth Strategy stated the following regarding Roblox Corporation (NYSE:RBLX) in its third quarter 2025 investor letter:

“Roblox Corporation (NYSE:RBLX is a leading gaming development and distribution platform. A viral garden simulation game, Grow a Garden, fueled outsized growth in the quarter, reaching more than 20 million concurrent users—far above the roughly 1 million average for other popular experiences. This surge helped second-quarter bookings accelerate 51 percent year over year, supported by daily active users and total hours rising 41 percent. Grow a Garden reflects a broader structural shift on Roblox: new experiences are gaining unprecedented traction. We view this trend as healthier than the platform’s past reliance on a few mainstay franchises, and it underscores a defining strength of Roblox—the frictionless creation of user-generated content paired with global distribution.”

Jim Cramer on Roblox (RBLX): “I Think It's Terrific”

Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the second quarter, which was 68 in the previous quarter. In Q3 2025, Roblox Corporation’s (NYSE:RBLX) revenue grew 48% year-on-year to $1.36 billion. While we acknowledge the risk and potential of Roblox Corporation (NYSE:RBLX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Roblox Corporation (NYSE:RBLX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Roblox Corporation (NYSE:RBLX) and shared the list of best communication and media stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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