ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024

4. Roblox Corporation (NYSE:RBLX)

Stake Value as of Q3 2024: $524,100,790

Roblox Corporation (NYSE:RBLX) is an American company, headquartered in Menlo Park, California, that provides users with an immersive platform for connection and communication. It is the developer of Roblox, an online gaming platform and game creation system, that allows users to play games created by them and other users.

The gaming platform offers free access to millions of games and generates revenue through in-game purchases. Its virtual currency, Robux, facilitates these purchases. The currency has helped the company attract gamers and developers to the platform, as they can convert Robux into real money.

Roblox Corporation (NYSE:RBLX) posted stellar results for Q3 on October 31, with revenue posted at $919 million, growing 29% from last year, and above the guidance provided at the end of Q2 of between $860 million and $885 million. The sale of virtual currency was reported at $1.13 billion, beating estimates of between $1 billion and $1.025 billion. DAUs for the quarter reached a record 88.9 million, growing 27% year-over-year with noticeable growth across all regions, most notably in Japan and India.

Roblox Corporation (NYSE:RBLX) now expects full-year bookings to be between $4.34 billion and $4.37 billion, up from initial projections of between $4.18 billion and $4.23 billion. With the gaming industry booming and set to grow further over the coming years, the general outlook for the stock is encouraging. According to the World Economic Forum, the gaming industry was valued at $235.7 billion in 2022 and is expected to cross the $321 billion mark by 2026.

Wall Street analysts have a consensus BUY rating on the stock, with a median share price upside potential of 6%. It is among the top picks from the ARK Invest stock portfolio, representing 4.79% of the asset management company’s investments.