Roblox Corp (RBLX) is Gaining Market Share. Here’s Why

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]