Is Roblox (RBLX) A Worthy Long-Term Investment?

Tao Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -4.82 percentage points was delivered by the fund for the fourth quarter of 2021, underperforming its benchmark, the MSCI All Country World Index which delivered +6.98 percentage points for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Tao Value, in its Q4 2021 investor letter, mentioned Roblox Corporation (NYSE:RBLX) and discussed its stance on the firm. Founded in 2004, Roblox Corporation (NYSE:RBLX) is a San Mateo, California-based gaming company with a $29.1 billion market capitalization, and is currently spearheaded by its CEO, David Baszucki. Roblox Corporation (NYSE:RBLX) delivered a -51.90% return since the beginning of the year, while its 12-month returns are down by -29.11%. The stock closed at $49.62 per share on March 18, 2022.

Here is what Tao Value has to say about Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter:

Roblox (RBLX) got significant 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 business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.

Our calculations show that Roblox Corporation (NYSE:RBLX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Roblox Corporation (NYSE:RBLX) was in 61 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 50 funds in the previous quarter. Roblox Corporation (NYSE:RBLX) delivered a -49.72% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Roblox Corporation (NYSE:RBLX) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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