2022 was a dismal year for some investors, with several growth stocks getting battered left, right, and center. With a better-than-expected real gross domestic product (GDP) growth rate and cooling inflation in the third quarter, many growth stocks are seeing a strong recovery in share prices. In such an environment, it makes sense for investors to consider picking up shares in growth stocks that are riding solid secular trends such as streaming, robotics, and artificial intelligence (AI).
Roblox's (NYSE: RBLX) stock is in the limelight lately after recovering more than 50% from its 52-week low of $24.88, thanks in part to the solid Q3 revenue growth it reported in early November. Roblox went public at just the right time in 2021. Such a move was not unreasonable, considering Roblox's short track record and sizable losses.
The market is underestimating these industry leaders, and that means investors have attractive buying opportunities.