Positive Drivers Across the Board Lifted Roblox (RBLX) in Q2

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class fund ARTMX returned 14.40%, Advisor Class fund APDMX posted a return of 14.45%, and Institutional Class fund APHMX returned 14.50%, compared to a 18.20% return for the Russell Midcap Growth Index. Global markets experienced a significant but volatile Q2, rotating from double-digit declines to double-digit gains. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Mid Cap Fund 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 27.72%, and its shares gained 260.88% of their value over the last 52 weeks. On August 7, 2025, Roblox Corporation (NYSE:RBLX) stock closed at $134.14 per share, with a market capitalization of $88.119 billion.

Artisan Mid Cap Fund stated the following regarding Roblox Corporation (NYSE:RBLX) in its second quarter 2025 investor letter:

"Among our top Q2 contributors were Spotify, Snowflake and Roblox Corporation (NYSE:RBLX). Roblox is an online platform where users can play games created by other users and create their own games with Roblox Studio, a robust suite of development and coding tools. The company’s model is similar to a social network in that user-generated content scales with user growth on the platform and it benefits from viral adoption. The company has invested significantly in numerous growth drivers, including international market expansion and enhanced support for additional video game genres. In addition, the company should start to see a payoff from its heavy investments in the form of greater operational efficiency and significant margin expansion. During the period, it reported better-than-expected quarterly results with positive indicators across the board, including a better-than-expected 31%increase in bookings (sale of virtual currency), user growth and margin expansion. We used the post-Liberation Day market correction to add to this position as well."

Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the first quarter, which was 61 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 potential of Roblox Corporation (NYSE:RBLX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Roblox Corporation (NYSE:RBLX) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q2 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.