10 Best Video Game Stocks to Buy Now

5. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 61

Roblox Corporation (NYSE:RBLX) provides online gaming services. Its platform comprises Roblox Client, Roblox Studio, and Roblox Cloud. Roblox Studio is an app that allows users to explore digital 3D worlds, while Roblox Studio is a toolset used by creators and developers to publish, build, and operate 3D experiences and other content. Roblox Cloud encompasses the infrastructure and services powering human co-experience platforms.

The company reported 32% year-over-year revenue growth in fiscal Q4 2024, reaching $988 million and surpassing analyst estimates of $960 million. Its bookings also grew 21% year-on-year to $1.362 billion, surpassing the top end of its guidance. Japan and India make up two very large markets for the company, and drove over 50% year-over-year growth. Daily Active Users (DAUs) for the company rose 18% year-over-year to 85.3 million in fiscal Q4 2024.

Roblox Corporation (NYSE:RBLX) is also expanding the range of the ages on its platform. Over 61% of its total DAUs fall in the over 13 category, which saw a 26% year-on-year growth. All these trends reflect the company’s growing popularity. Roblox Corporation (NYSE:RBLX) is also investing in its virtual economy, app performance, and AI-powered discovery and safety to enhance the user experience.

In Q4 2024, the company 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, bringing a positive light to the company.