Here’s why everyone’s so excited about this company. The stock shot 55%, past $70, into the next day’s afternoon. It priced at $45 on the New York Stock Exchange under the ticker RBLX. Roblox stock went public on Wednesday, Mavia direct listing. (NYSE: U), a game development platform that went public last year, has already seen its stock price surge roughly 55% and has been on my radar as one of the best IPOs of the year. Kids and adults alike have been flocking to games as a way to virtually hang out and as a great indoor activity. That's exactly why I want to talk to you about the Roblox IPO. But another industry is quietly thriving in this new economy too: video games. (NASDAQ: ZM) taking off thanks to new remote work trends. You already know about success stories like Zoom Inc. The COVID-19 pandemic sent the economy reeling, but some industries have thrived. Rather than a traditional value play, I consider RBLX stock a misunderstood growth story, which may as well be as good as a value stock through the eyes of investors who seek to maximize the bang for their investment buck.Leave a Reply Click here to cancel reply. If that's the case, the 10.4 times price-to-sales (P/S) multiple doesn't do the stock justice - not when you have Nvidia ( NASDAQ:NVDA), an AI and omniverse play, going for over 40 times P/S. In a rise-rate world, these losses seem that much more disgusting.Īs interest rates eventually come down (most likely) and the masses become increasingly interested in spatial computing, I expect Roblox may be on the cusp of a multi-year cycle of impressive growth. For now, the stock is being punished for posting ugly losses. If Apple is the hardware way to play VR/AR, Roblox is likely the way to play it from the software side. I think Tilchen is right on the money - Roblox is a metaverse story, perhaps one of the most intriguing. He also praised the company for investing in future growth. Roblox "has evolved to become one of the leading destinations for immersive gaming and social interactions in persistent virtual worlds," stated Mr. Last month, Roblox stock got a bid of confidence for Canaccord Genuity analyst Jason Tilchen, who started the stock as a "Buy" alongside a $48 price target. Roblox Stock: An Undercover Metaverse Story Roblox seems like one of the ships that could ascend well before we're all "plugged into" some sort of metaverse. That could kick off a gradual trend that lifts all boats in the VR/AR waters. Though I don't expect Apple Vision Pro will be the device that propels spatial computing to the forefront, I do believe that successors to the headset (cheaper and more capable iterations) could. Apple ( NASDAQ:AAPL) and its Vision Pro spatial computer may be the device that advances the field by leaps and bounds over the next two to three years.ĭoubt Apple, if you will, but the company seems to know when to bet big on a specific emerging technology. Instead, the adoption of devices could take place steadily over time. For the Metaverse and spatial computing, I don't think there will be one. It's never easy to tell when the tipping point will be. These days, LLMs (or AI-powered chatbots) are the talk of the town, with many firms that need to get in on the action or risk being left behind as the so-called "Fourth Industrial Revolution" plays out. Just look back to a year ago when many people were oblivious to LLMs (Large Language Models) like ChatGPT. ![]() Don't Count on a Sudden "Tipping Point" for the Metaverse and Spatial Computing The Metaverse may be much closer to "taking off" than many realize. When it comes to the Metaverse, I do not believe there is time to follow the herd with regard to capital allocation. The mentality in this high-rate environment has been all about cost cuts and driving up efficiencies. In any case, Roblox is still investing with growth in mind. Should the Metaverse become a hot topic again, though, Roblox is one of the names that could quickly heat up. It's this uncertainty that's kept the broader basket of metaverse (or VR/AR) stocks from blasting off. As for the Metaverse, it's tough to tell when the "gold rush" will begin. Undoubtedly, AI seems so much closer to entering its prime, and with that comes monetization (or money-saving) opportunities that may be realizable over a nearer-term time horizon. Though Meta still seeks to become a pioneer in the Metaverse (or spatial computing), a lot of enthusiasm has shifted over to other trends, including AI. Meta Platforms ( NASDAQ:META) helped spark initial metaverse hype when it decided to shift gears and go after the new medium of growth. ![]() Renewed Metaverse Enthusiasm Could be Hugely Beneficial for Roblox Stock
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