#stocks #investment
- The most popular game in the meta universe
- Analyst opinions
- Conclusion
Roblox is one of the most popular video game platforms in the meta universe.
Its namesake game, Roblox, has become the most profitable game in 2020. Here, users can create their own games and earn their share of the profits by trading in character avatars and virtual outfits.
Roblox was founded in 2004 and is based in San Mateo, California. Founders : David Bazooki and Eric Cassel. Roblox gaming platform was released in 2006.
Roblox is one of the platform games in the meta universe.
Roblox’s Vice President of Partnerships Christina Wooton about the meta-universe : “The meta-universe is bigger than games. We are opening up a new category of human shared experience. It’s an immersive place where people can come and talk to each other and share virtual experiences. They can do things together, like work, learn, play, shop and have fun.”
Market capitalisation of the company : $23.57 billion.
Analyst Opinion.
Shares of Roblox Corp (RBLX) lost 8% in value on Friday after an investor day and closed on Thursday.
Source:TradingView
Analyst Morgan Stanley confirmed a target value of $32.
The analyst noted that although Roblox is making efforts to attract investment by using immersive advertising opportunities, August’s figures were lower than previously, so the outlook is uncertain and investors have slowed down and are taking a wait-and-see approach.
Bookings per hour did not meet analysts’ expectations and were at a 22-year low since the start of the year at $0.05 per hour.
Reservations in August also slowed and were lower than forecasted.
At the same time, analyst Needham & Company recommends buying Roblox shares . He explains it this way:
“The three highlights of the investor’s day for us are:
commentary on advertising, which we see as a significant opportunity for RBLX;
product improvements that spin the developer flywheel and allow larger teams to create on RBLX;
and we learned that “people of all ages are participating on the platform” as more than 13 of the largest and fastest-growing demographic groups are involved.”
He also lowered the stock’s target price to $53.
In conclusion, analyst Kott Letonen says that Roblox stock should not be overlooked, certainly as an innovative topic for investors. However, it is not worth buying them yet either, as the stock is falling sharply. “Against the backdrop of the current stock market volatility and Roblox’s steep decline, the stock should not be bought now. Wait for the stock to form a new base which will offer a new buying point.”
Read also A Safe Haven During The Recession. Where To Invest ?
Latest News