ROBLOX (RBLX) Fell due to Concerns Over Sustaining Momentum

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered -0.37%, and the Institutional Class, APHMX, delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Continued strength in information technology (IT) and health care contributed to the performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) is an online gaming and virtual experience platform, supported by AI-driven innovation and infrastructure advantages. On February 20, 2026, Roblox Corporation (NYSE:RBLX) stock closed at $62.00 per share. One-month return of Roblox Corporation (NYSE:RBLX) was -16.23%, and its shares gained 1.52% over the past 52 weeks. Roblox Corporation (NYSE:RBLX) has a market capitalization of $43.94 billion.

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

"Our biggest detractors in Q4 were Roblox Corporation (NYSE:RBLX), Veeva and Spotify. ROBLOX is a leading user-generated content platform with strong global growth and operating leverage, supported by AI-driven innovation and infrastructure advantages. The company delivered exceptional growth in 2025, driven by viral hit games such as Grow a Garden and Steal a Brainrot, both of which set global records for peak concurrent players. Recent results were strong, with revenue and bookings up 48%and70%YoY, respectively. Despite this performance, shares declined 42% during the quarter (but were still up 21% for the year) amid uncertainty about sustaining momentum after a massive year and the timing of future hit titles. While new blockbusters are difficult to predict, we believe management is making the right investments to support long-term growth, and we added to the position on weakness."

Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 83 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the fourth quarter, compared to 90 in the previous quarter. 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 a list of best innovative stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q4 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.