Video gaming platform Roblox is quietly leveraging technology that could finally make a much-needed difference to its bottom line. Rocket Lab didn't live up to a self-imposed deadline, but that doesn't change the stock's long-term bullish thesis.
Roblox stock has been a wild ride for investors, but the business continues to expand at high rates. Daily users and time spent on the platform have nearly doubled in the last two years.
The Virtus Silvant Mid-Cap Growth Fund returned +5.43% (Class INST) for the quarter, compared to the Russell Midcap Growth Index's return of +2.78%. Palantir Technologies (PLTR) and Roblox (RBLX) were among the top stock contributors. Fair Isaac Corp. (FICO) and Verisk Analytics (VRSK) were among the largest stock detractors.
Roblox's engagement is soaring at an unprecendented rate, making it worthy of a serious look from investors. Management is aiming to reach 1 billion users, which could give the stock more long-term upside.
This week the company announced that it would require users to undergo an A.I.-powered age estimation process in order to chat with others on the platform.
Cathie Wood added to her positions in Klarna, Roblox, and Circle Internet Group on Tuesday. The three stocks have fallen sharply since posting financial results this earnings season.
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