With the metaverse, we can always look at Apple or Nike stock to take advantage. But one to really pay attention to is Roblox (RBLX), we said on June 29.
At the time, RBLX traded at around $40 a share. Today, it’s up to $41.63, and could see higher highs. For one, the company just announced positive sales numbers. Bookings, for example, were up 23% year over year through April. Revenue jumped 22% year over year to $655 million. Daily average user growth was also up 22% year over year to 66 million. Plus, users spent about 14.5 billion hours interacting with RBLX content – up 23% year over year.
Two, analysts seem to like RBLX, too. Benchmark analysts just upgraded the RBLX stock to a buy rating. Roth MKM upgraded RBLX to a buy. Barclays raised its price target to $32 from $28, with BTIG raising its price target to $60 from $55.
Plus, as noted by Seeking Alpha:
“Roblox continues to be a compelling investment opportunity as BTIG analysts anticipate a favorable bookings growth and margin improvement cycle beginning in the second half of 2023. With the introduction of new products enhancing the user and developer experience, they foresee sustained top-line growth (projected at least 20% bookings growth over the next two years) and margin expansion from high single digits in 2023 to high teens in 2025. Estimates outpace consensus expectations, and upcoming catalysts like earnings reports, Developers Conference, and Investor Day events are expected to unlock further upside.”