We recently published a list of Billionaire Mason Morfit’s 10 Stock Picks with Highest Upside Potential. In this article, we are going to take a look at where Roblox Corporation (NYSE:RBLX) stands against Billionaire Mason Morfit’s other stock picks with highest upside potential.
Mason Morfit, the billionaire CEO of ValueAct Capital, runs one of Wall Street’s most respected activist hedge funds. Unlike funds that make headlines through hostile takeovers, ValueAct works quietly behind the scenes to unlock value with a significant record of successful investments. As a “soft activist,” the fund partners with company management to create reforms that help the business and its investors.
ValueAct was founded by Jeff Ubben in 2000, with Morfit taking over in 2020 as CEO. It has stuck to the fund’s disciplined style, promising “win-wins for our companies and our investors”. As of March 2021, with over $13 billion in assets under management, the company focuses on a small number of high-conviction investments, often holding positions for years to maximize returns.
ValueAct works by finding companies that markets don’t fully understand, undervalue, or that are changing in important ways. The company’s resolution stands out and goes well with today’s unpredictable market trends. With trade problems, higher tariffs, and regulatory pressure hurting investor confidence, especially in tech and entertainment, Morfit’s steady, fundamentals-based strategy sets it apart.
These strengths become even more relevant given the broader economic turbulence in recent years. Recent economic developments have stirred up changes all over the global markets. Donald Trump’s sweeping tariffs triggered sell-offs across media and tech stocks, forcing companies to delay IPOs, postpone products, and rethink their supply chains. Bloomberg reported that entertainment companies’ stocks fell regardless of their actual trade exposure, as recession fears increased. In such an unsteady and unpredictable environment, spotting real opportunities has become harder but more crucial.
Considering these conditions, Morfit’s picks stand out because they blend resilience, innovation, and structural advantages that position these companies to succeed when markets stabilize. The combination of AI, digital transformation, and platform business models creates opportunities across industries, despite economic headwinds. By focusing on efficiency, margins, and long-term growth trends, ValueAct can invest with patience – a real advantage in today’s reactionary market.
Methodology
For this article, we analyzed Greenlight Capital’s Q4 2024 13F filings to identify Billionaire Mason Morfit’s 10 Stock Picks with the Highest Upside Potential. We then ranked the stocks in ascending order based on their estimated upside. These stocks are popular with elite hedge funds, which have been considered as well.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A person taking lessons through Roblox Education, expanding their knowledge and skills.
Roblox Corporation (NYSE:RBLX)
Potential Upside: 3.84%
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) is a popular immersive platform based in San Mateo, California, where users create, share, and explore 3D experiences using tools like Roblox Studio and Roblox Cloud. The company has transformed the gaming industry with its user-generated content approach.
Roblox Corporation (NYSE:RBLX) is a big part of Mason Morfit’s investment portfolio, making up 13.36% of its total value with shares worth about $586 million. It had a great first quarter in 2025, with $1.035 billion in revenue, 29% higher than last year and beating the company’s expectations. Meanwhile, bookings jumped 31% to $1.207 billion and daily users grew to 97.8 million, an increase of 26%. Growth was especially strong in new markets—India, Japan, and the broader Asia-Pacific region—with user increases of 77%, 48%, and 40%, respectively.
Moreover, the company is using artificial intelligence and better operations to boost profits. Roblox’s free cash flow more than doubled, up 123% to $426 million, while operating cash hit $443 million. Developers made $281 million for the quarter, and Roblox Corporation (NYSE:RBLX) will likely pay creators over $1 billion in 2025, a turning point for user-generated platforms.
Roblox Corporation (NYSE:RBLX) is strategically building a cutting-edge data center in São Paulo, Brazil, set to open in 2026, with Brazil being its second-biggest market, with users growing 181% over four years. The new center will reduce latency, enhance performance, and support local pricing, benefiting both creators and players.
With solid finances and smart global growth, Roblox Corporation (NYSE:RBLX) stands out as a high-growth stock in Morfit’s portfolio.
Overall, RBLX ranks 10th on our list of Billionaire Mason Morfit’s stock picks with highest upside potential. While we acknowledge the potential of RBLX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RBLX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
