7 Best Gaming Stocks To Buy Now

3. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 54

Roblox Corporation (NYSE:RBLX) is an American video game developer that ranks among the top 3 on our list of the best gaming stocks to buy now. The company developed Roblox, which is a dynamic gaming platform and game creation system that allows users to create, share, and play games developed by other users. Roblox offers free access to its extensive library of millions of games while generating revenue through in-game purchases using its virtual currency, Robux. Players can buy Robux to unlock special features, customize their avatars, and enhance their gaming experience. This model attracts a large user base and also incentivizes developers to create engaging content, as they can earn Robux that can be exchanged for real money.

The corporation aims to actively expand its platform to include various uses such as gaming, social interaction, shopping, and education. During the Q4 2024 earnings call, management highlighted that the company is venturing into e-commerce by partnering with Walmart to test real-world shopping experiences within the platform.

In Q2 2024, Roblox Corporation (NYSE:RBLX) reported impressive financial results, with revenue reaching $893.5 million, a 31% increase from the previous year. Bookings also rose by 22% year-over-year to $955 million, surpassing guidance expectations. The platform achieved a record 79.5 million average daily active users (DAUs), reflecting a 21% year-on-year growth. Hours engaged hit a record 17.4 billion, up 24% year-over-year, with significant growth in key markets like Japan and India. Additionally, in Q2 of 2023, the company’s cost to serve 1,000 hours was approximately $12.75. In Q2 2024, that cost decreased to $9.61, representing a 25% fall year-over-year.

The company continues to focus on enhancing its user-generated content ecosystem, which attracts a diverse audience. Roblox Corporation (NYSE:RBLX) is investing in creating better experiences for its creator community while also expanding into new areas.

According to Insider Monkey’s database, 54 hedge funds held stakes in Roblox Corporation (NYSE:RBLX) as of the second quarter. Among these, ARK Investment Management stands out as the largest shareholder in RBLX, with stakes worth $496.33 million.