10 Best Esports Stocks to Buy Now

5. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 52

Roblox Corporation (NYSE:RBLX) is an American video game developer that is known for its versatile gaming platform that allows users to design, share, and play games made by other users. The platform, Roblox, gives free access to millions of games and Roblox Corporation (NYSE:RBLX) generates revenue through in-game purchases that use its virtual currency, Robux. Dubit, a game studio focused on the Metaverse and esports, raised $8 million in 2021 for the first live esports league in the Metaverse on Roblox. Additionally, Roblox Corporation (NYSE:RBLX) hosts numerous community-run esports tournaments on its platform.

The company is making strategic moves to achieve its ambitious target of reaching 10% of the global gaming content revenue. Roblox Corporation (NYSE:RBLX) is investing in its virtual economy, app performance, and AI-powered discovery and safety to enhance the user experience. In Q4 2024, Roblox Corporation (NYSE:RBLX) launched Avatar auto-setup, an AI-powered tool that takes 3D avatar models and turns them into fully functional Roblox avatars with skinning, boning, and facial animation support. During the quarter, the company also fully launched Roblox Assistant to allow conversational creation within Roblox Studio. Roblox Corporation (NYSE:RBLX) expanded its platform availability by launching on PlayStation and it is continually looking to introduce its platform to new audiences.

All of these initiatives are aimed at driving higher engagement to help the platform grow. For the full year 2024, Roblox Corporation (NYSE:RBLX) reported that average daily active users were 82.9 million, up 21% year-over-year, while hours engaged reached 73.5 billion, up 23% year-over-year.