With the metaverse story gaining momentum, one of the top stocks to keep an eye on is Roblox Corp. (RBLX). Granted, the RBLX did run from $75 to $126 over the last few days, but it could be setting up for a bigger push higher.
For one, Roblox already has a social metaverse, with a mission of building a human co-experience platform that enables billions of users to come together to play, learn, communicate, explore and expand their friendships, according to Roblox.
Two, Roblox Corp. is quickly growing. In fact, in its most recent quarter, revenue jumped 102% over Q3 2020 to $509.3 million, bookings increased 28% to $637.8 million, average Daily Active Users jumped by 31% to 47.3 million.
Three, analysts seem to like the stock. Atlantic Equities for example, just raised its price target on RBLX to $125 from $110. Stifel raised its target price to $134 from $121. Morgan Stanley raised its target to $150 from $88.
According to TheFly.com, the Morgan Stanley analyst “came away from Roblox’s Q3 and analyst day incrementally bullish on the company’s early metaverse leadership and higher long-term monetization as it invests to improve its user experience, developer tools, and ability to onboard brands. Nowak added that he now believes a premium is appropriate given the advertising optionality on top of Roblox’s existing in-app purchase revenue streams.”
RBLX is now the second metaverse idea we’ve shared in recent days.
On Wednesday, we highlighted Microsoft (MSFT) as it traded around $339. This morning, the stock is up to $343.67 in pre-market.