Roblox

RBLX

Market cap $66.7B

U's improving profitability and expanding tech stack contrast with RBLX's rapid growth but tightening margins in a compelling metaverse face-off.

The Virtus Silvant Mid-Cap Growth Fund returned +5.43% (Class INST) for the quarter, compared to the Russell Midcap Growth Index's return of +2.78%. Palantir Technologies (PLTR) and Roblox (RBLX) were among the top stock contributors. Fair Isaac Corp. (FICO) and Verisk Analytics (VRSK) were among the largest stock detractors.

Positioning within the Magnificent 7 was the primary driver of poor security selection and relative underperformance. The Fund's holdings in businesses viewed as key enablers of AI were strong contributors to absolute returns. Consumer internet names benefited from idiosyncratic growth drivers in ecommerce, advertising, and gaming.

Roblox's engagement is soaring at an unprecendented rate, making it worthy of a serious look from investors. Management is aiming to reach 1 billion users, which could give the stock more long-term upside.

RBLX tumbles on margin worries despite surging users and bookings, raising questions about near-term growth and valuation.

This week the company announced that it would require users to undergo an A.I.-powered age estimation process in order to chat with others on the platform.

Roblox hits record users and engagement but signals 2026 margin pressure as heavy spending on developers, safety and infrastructure rises.

@Theotrade's Don Kaufman a bear when it comes to Roblox (RBLX) due to concerns with its long-term business model, as well as Netflix (NFLX) as streaming competition intensifies. Where he is bullish in today's Big 3: ProShares Bitcoin ETF (BITO) as Bitcoin futures hit "wildly oversold" metrics.

Cathie Wood added to her positions in Klarna, Roblox, and Circle Internet Group on Tuesday. The three stocks have fallen sharply since posting financial results this earnings season.

Online gaming giant Roblox has just announced it will start checking users' ages from early December in an attempt to stop children and teenagers talking with adults.