Roblox Corporation (RBLX): A Bull Case Theory

We came across a bullish thesis on Roblox Corporation (RBLX) on SuperJoost’s Substack In this article, we will summarize the bulls’ thesis on RBLX. Roblox Corporation (RBLX)'s share was trading at $96.17 as of 11^th June.

The past week in gaming felt disjointed, marked by a series of standalone announcements—PlayStation, Nintendo, Summer Game Fest, and Xbox—each vying for attention in a fragmented landscape. In contrast to the synchronized spectacle of E3’s heyday, this new asynchronous model risks audience fatigue and dilutes collective industry impact.

While standout moments did emerge—GameDiscovery Co’s visibility, Astrobot’s expansion, and The Outer Worlds 2’s flair—the lack of coordination reflects a deeper strategic disconnect.

Like fireflies dimmed in isolation, the industry’s abundance of solo spotlights may be masking a contraction in underlying demand. This fragmentation could soon evolve from a tactical choice to a structural liability, unless a unified approach returns.

Amid this uneven backdrop, one game unexpectedly stole the spotlight: Grow a Garden on Roblox. Simple yet resonant, it catalyzed a sharp turnaround in investor sentiment. Beyond its gameplay loop, Grow a Garden symbolized a pivotal shift—proof that Roblox can generate predictable, repeatable hits rather than relying on viral luck.

This is a strategic inflection point. Years of investing in discovery tools, creator support, and data infrastructure are paying off, making Roblox resemble platforms like YouTube or TikTok: chaotic origins slowly evolving into systematized engines of engagement.

The implications are significant—greater advertiser confidence, better talent retention, and stronger long-term growth visibility, with EBITDA margins expected to surpass 20% in FY26. With 40% of users now aged 17–24 and international expansion underway, Roblox is maturing demographically and geographically. The breakout success of Grow a Garden has driven a 69% rise in share price, reigniting belief in Roblox not just as a game platform, but as a cultural and financial force.

Previously, we covered a bullish thesis on Roblox (RBLX) that focused on its stellar Q1 2025 performance, including 29% revenue growth, 123% free cash flow growth, and booming creator earnings. The stock has seen an approximate 36% growth in its price since the coverage. Together, these theses outline Roblox’s transformation into a scalable, maturing digital economy with rising margins and cultural relevance.

Roblox Corporation (RBLX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held RBLX at the end of the first quarter which was 61 in the previous quarter. While we acknowledge the risk and potential of RBLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.