Will It Be Possible For Roblox Corporation (RBLX) To Retain Gamer Engagement?

SaltLight Capital, an investment management company, released its “SaltLight SNN Worldwide Flexible FR Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The Fund generated a return of +15.61% in the third quarter of 2024. This letter discusses the firm’s broad thesis regarding the game industry’s future. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.

SaltLight Capital highlighted stocks like Roblox Corporation (NYSE:RBLX), in the third quarter 2024 investor letter. Roblox Corporation (NYSE:RBLX) develops and operates an online entertainment platform.  The one-month return of Roblox Corporation (NYSE:RBLX) was 17.11%, and its shares gained 29.39% of their value over the last 52 weeks. On November 21, 2024, Roblox Corporation (NYSE:RBLX) stock closed at $49.35 per share with a market capitalization of $32.385 billion.

SaltLight Capital stated the following regarding Roblox Corporation (NYSE:RBLX) in its Q3 2024 investor letter:

“Roblox Corporation (NYSE:RBLX) has firmly established itself as the dominant player in user-generated gaming within Western markets. Meanwhile, Tencent has developed a similar ecosystem in China with its WeChat Mini-games platform. Owning both gives us a unique vantage point to assess the evolving landscape of user-generated gaming platforms globally.

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

Roblox Corporation (NYSE:RBLX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the third quarter which was 54 in the previous quarter. Roblox Corporation’s (NYSE:RBLX) third quarter revenue reached $919 million, a 29% year-over-year increase, exceeding the previous quarter’s guidance range of $860 million and $885 million. 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 cheapest AI stock.

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