What Makes Roblox (RBLX) a Lucrative Investment?

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its fundamental, bottom-up philosophy even though near-term volatility exists. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap 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 -5.17%, and its shares gained 201.80% of their value over the last 52 weeks. On October 8, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $125.97 per share, with a market capitalization of $87.328 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Roblox Corporation (NYSE:RBLX) in its third quarter 2025 investor letter:

“We added communication services company Roblox Corporation (NYSE:RBLX), the leading user-generated gaming platform. Roblox is experiencing a fundamental re-acceleration in growth due to improved discovery algorithms and AI driving faster game development and growing opportunities in advertising. With a dominant position from its network effects, a plethora of creator tools and the ability to grow its virtual economy, we believe that Roblox will continue to drive strong top-line revenue growth. Secular tailwinds such as expansion into older age demographics and internationally, as well as margin expansion opportunities as existing user engagement continues to grow, also position the company well.”

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 Q2 2025, Roblox Corporation’s (NYSE:RBLX) revenue grew 21% year-on-year to $1.1 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 biggest stocks in Renaissance Technologies’ portfolio. In addition, please check out our hedge fund investor letters Q3 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.