Roblox Corp (RBLX) is Gaining Market Share. Here's Why

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the third quarter of 2025, which increased approximately 3%.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory 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 -7.04%, and its shares gained 44.70% of their value over the last 52 weeks. On December 17, 2025, Roblox Corporation (NYSE:RBLX) stock closed at $85.91 per share, with a market capitalization of $59.81 billion.

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

"Roblox Corporation's (NYSE:RBLX) two-sided gaming platform continues to gain share, with stronger engagement and operating leverage driven by improved search algorithms and recent hit titles. Third-party data suggests bookings are accelerating despite tougher comparisons."

Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the third quarter, which was 75 in the previous quarter. In Q3 2025, Roblox Corporation’s (NYSE:RBLX) revenue grew 48% year-on-year to $1.36 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 best high growth stocks to buy. In Q3 2025, Sands Capital Select Growth Strategy benefitted from Roblox Corporation's (NYSE:RBLX) strong growth. 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.