Roblox (RBLX) is a bit overbought at the moment.
So, we’d wait for a healthy near-term pullback. Longer-term, it’s a standout opportunity.
Since bottoming out at around $38 in October, it’s now up to $60.81. Helping, Morgan Stanley just upgraded the RBLX stock to overweight on strong company earnings and guidance.
“Recent results leave us incrementally positive on RBLX’s ability to consistently execute and gain share on the path to its long-term opportunity. We believe consensus underappreciates the potential for RBLX to exceed its 20% bookings growth targets as it continues expanding its audience,” said the firm, as quoted by Seeking Alpha.
HSBC analysts also initiated a buy rating on RBLX, noting, “Online video gaming giant Roblox has been popular with kids and is now winning over investors, too,” as quoted by CNBC.
In its third quarter, the company’s EPS loss of 37 cents beat by a penny. Bookings of $1.13 billion, up 34.6% year over year, beat by $110 million. Average daily users jumped 27% year over year to 88.9 million. Average monthly unique payers jumped 30% year over year.
Plus, Precedence Research predicts the global metaverse market could be worth nearly $2.3 trillion by 2033 from $92.46 billion in 2023. Allied Market Research says the market could be worth $1.23 trillion by 2030. Also, corporate giants are racing to use the technology. That includes IKEA, McDonald’s, Hugo Boss, Nike, Adidas and Walmart to name a few.
Sincerely,
Ian Cooper
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