Core Insights - Brown Advisory Mid-Cap Growth Strategy underperformed its benchmark, the Russell Midcap® Growth Index, which increased approximately 3% in Q3 2025 [1] - The investor letter highlighted Roblox Corporation (NYSE:RBLX) as a key stock, noting its significant year-on-year revenue growth of 48% to $1.36 billion [3] Group 1: Performance Overview - The Brown Advisory Mid-Cap Growth Strategy's performance lagged behind the Russell Midcap® Growth Index in Q3 2025 [1] - Roblox Corporation's stock experienced a one-month return of -7.04% but gained 44.70% over the last 52 weeks, closing at $85.91 per share on December 17, 2025, with a market capitalization of $59.81 billion [2] Group 2: Company Insights - Roblox Corporation's two-sided gaming platform is gaining market share, driven by improved engagement and operating leverage from enhanced search algorithms and popular titles [3] - Despite the potential of Roblox Corporation, the company believes certain AI stocks present greater upside potential and lower downside risk [3] - In Q3 2025, 90 hedge fund portfolios held Roblox Corporation, an increase from 75 in the previous quarter [3]

Core Viewpoint - A Russian ban on the U.S. gaming platform Roblox has sparked discussions among children and parents regarding censorship and the effectiveness of bans in an age where children can easily circumvent restrictions [1] Group 1 - The ban has led to debates about censorship among children and parents [1] - There is a concern about the utility of bans in a digital environment where children can bypass restrictions with minimal effort [1]

Group 1 - The article discusses the potential for investors to position themselves in undervalued stocks that are mispriced by the market as the year ends [1] - Stone Fox Capital, based in Oklahoma, is led by Mark Holder, a CPA with extensive experience in investing and portfolio management [2] - The investing group "Out Fox The Street" provides stock picks, deep research, model portfolios, daily updates, and real-time alerts to help investors identify potential multibaggers while managing portfolio risk [2] Group 2 - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [4] - It highlights that past performance is not indicative of future results, and no specific investment recommendations are provided [5]

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end December, consider joining Out Fox The Street .Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potentia ...

Core Insights - Roblox has experienced a 14.5% decline in market value over the past 21 trading days, primarily due to concerns over slowing bookings and ongoing legal challenges related to child safety [2][3] - The company is currently valued at $61 billion with reported revenues of $4.5 billion, trading at $87.44 per share [3] Financial Performance - Revenue growth over the past 12 months stands at 32.7%, with an operating margin of -25.0% [9] - Roblox has a Debt to Equity ratio of 0.02 and a Cash to Assets ratio of 0.33, indicating strong liquidity [9] - The stock is trading at a Price-to-Sales (P/S) multiple of 21.6, reflecting a very high valuation [9] Market Resilience - The stock has shown significant underperformance compared to the S&P 500 during recent economic downturns, raising questions about its resilience if the market declines further [5] - Historical data indicates that Roblox stock has returned a median of -4.5% within a year after experiencing sharp declines since 2010 [9] Stock Performance History - Roblox stock fell by 82.8% from a peak of $134.72 on November 19, 2021, to $23.19 on May 10, 2022, while the S&P 500 saw a peak-to-trough decrease of 25.4% during the same period [10] - The stock fully recovered to its pre-crisis peak by July 31, 2025, and reached a new peak of $141.56 on September 29, 2025, before currently trading at $87.44 [10]

Core Viewpoint - The U.S. gaming platform Roblox is willing to modify certain features in Russia to lift a recent ban imposed on it [1] Group 1 - Roblox has faced a ban in Russia earlier this month [1] - The company is open to making changes to its platform to address the concerns that led to the ban [1]

Core Points - Protests occurred in Tomsk, Siberia against Russia's ban on the U.S. gaming platform Roblox, indicating public dissent over the decision [1] Group 1 - The protest involved several dozen participants, showcasing a rare instance of public opposition in Russia [1] - The ban on Roblox has sparked popular irritation, reflecting broader discontent with government restrictions on digital platforms [1]

J.P. Morgan on Friday downgraded Roblox (RBLX) to "neutral" from a previous investment rating of "overweight." Shares of the company are down 5.1% before midday. The research firm said they are positive on RBLX’s longer-term positioning in the video game ...

Core Viewpoint - The report summarizes significant changes in stock ratings from various investment banks, highlighting potential investment opportunities and market impacts. Upgraded Ratings - Jefferies upgraded Lululemon (LULU) from "Underperform" to "Hold," raising the target price from $120 to $170, citing the CEO's impending departure as a "major positive" [5] - UBS upgraded American Airlines (AAL) from "Neutral" to "Buy," increasing the target price from $14 to $20, noting that the market has not fully recognized the potential for significant profit increases as corporate client revenue recovers [5] - JPMorgan upgraded Citigroup (C) from "Neutral" to "Overweight," raising the target price from $107 to $124, believing that a stable economic environment in 2026 will benefit Citigroup more than its peers [5] - Guggenheim upgraded Bristol-Myers Squibb (BMY) from "Neutral" to "Buy," setting a target price of $62 for 2026, indicating attractive risk-reward dynamics [5] - Deutsche Bank upgraded Allegiant Air (ALGT) from "Hold" to "Buy," with a target price of $105, highlighting a balanced supply-demand environment in the U.S. domestic airline market by 2026 [5] Downgraded Ratings - JPMorgan downgraded Roblox (RBLX) from "Overweight" to "Neutral," lowering the target price from $145 to $100, citing pressures on user engagement and profit margins [10] - Baird downgraded PayPal (PYPL) from "Outperform" to "Neutral," reducing the target price from $83 to $66, due to volatility in transaction volumes and uncertainties in platform upgrades [10] - Stifel downgraded RH (RH) from "Buy" to "Hold," cutting the target price from $320 to $165, reflecting a second revenue guidance cut for fiscal year 2025 [10] - Northland downgraded Ciena (CIEN) from "Outperform" to "Market Perform," maintaining a target price of $190, stating that positive factors are already reflected in the current stock price [10] - Cowen downgraded Veeva Systems (VEEV) from "Overweight" to "Market Perform," indicating potential order losses due to competition from Salesforce (CRM) [10] Initiated Coverage - Citigroup initiated coverage on Boeing (BA) with a "Buy" rating and a target price of $265, describing it as an "attractive large-cap transformation stock" [11] - Jefferies initiated coverage on Moderna (MRNA) with a "Hold" rating and a target price of $30, expecting growth in vaccine sales but requiring more performance increments to meet guidance [11] - UBS initiated coverage on AppFolio (APPF) with a "Buy" rating and a target price of $285, noting no signs of spending slowdown or new competitive pressures [11] - TD Cowen initiated coverage on Tyler Technologies (TYL) with a "Buy" rating and a target price of $650, projecting a 20% sustainable SaaS growth rate due to cloud migration projects [11] - Jefferies initiated coverage on Badger Meter (BMI) with a "Buy" rating and a target price of $220, suggesting recent stock pullbacks present an attractive entry point [11]

Florida Attorney General James Uthmeier has filed a lawsuit against Roblox (RBLX) to hold the company accountable for misrepresenting the virtual gaming platform’s safety. In a public statement from his office on Thursday, Attorney General Uthmeier said Roblox failed to protect children ...