FOCUS RBLX
On December 17, Bernie McTernan at Needham started coverage on Roblox Corporation (NYSE:RBLX) with a Buy rating and a price target of $136. The analyst ponders that the entity is in the early stage of penetrating the gaming industry. Although the pandemic has increased the pace of growth and evolution of the gaming industry, McTernan still sees annual booking growth of over 20% until FY25, along with a continuous rise in daily active users (DAUs). The analyst also sees the rise of the metaverse platform by companies like Meta Platforms, Inc. (NASDAQ:FB) to be a growth catalyst in the future that needs to be unlocked.
50 hedge funds held a cumulative stake worth more than $3.57 billion in Roblox Corporation (NYSE:RBLX) at the end of Q3. In 2021, the stock price of Roblox Corporation (NYSE:RBLX) has increased by over 40% YTD and has outperformed the S&P 500 Index, which has experienced an increase of around 23% during the same period.
Jefferies Group shared its stance on Roblox Corporation (NYSE:RBLX) in its Q3 2021 investor letter. Here’s what the firm said:
“If we look at the Metaverse concept with more lenient guidelines for interoperability, then it becomes easier to see why certain companies are being referred to as Metaverse. On the virtual side, we’d point to companies like Epic Games, TakeTwo and Roblox. In augmented reality, it would be Niantic and SNAP. These are the large capitalized players in the space but albeit, not the only ones. We expect new mulit-billion dollar companies will rise as the Metaverse becomes more mature.
Roblox is a good example. The content is almost entirely user generated, the engine that powers the developer studio is provided by Roblox and developers/creators share in almost all the money that users spend on the platform. In addition, many of the items that you purchase in the avatar marketplace, or even a branded experience like Vans World, can be taken across experiences. Roblox talks a lot about platform extension, which would move the platform beyond just gaming/leisure experiences and into education and workplace offerings. The developer community has the capability to build tools for other developers, there are professional studios being built on the platform and many consumer-facing brands/content are partnering with Roblox to ensure a virtual presence. Roblox actually has a lot of the pieces for our utopian definition of Metaverse, but things like technology, interoperability with outside platforms and a dynamic, two-way economy are what’s missing. However, given our thesis that full interoperability is somewhat unrealistic, it’s easy to see how Roblox fits the definition…"
On December 17, Bernie McTernan at Needham started coverage on Roblox Corporation (NYSE:RBLX) with a Buy rating and a price target of $136. The analyst ponders that the entity is in the early stage of penetrating the gaming industry. Although the pandemic has increased the pace of growth and evolution of the gaming industry, McTernan still sees annual booking growth of over 20% until FY25, along with a continuous rise in daily active users (DAUs). The analyst also sees the rise of the metaverse platform by companies like Meta Platforms, Inc. (NASDAQ:FB) to be a growth catalyst in the future that needs to be unlocked.
50 hedge funds held a cumulative stake worth more than $3.57 billion in Roblox Corporation (NYSE:RBLX) at the end of Q3. In 2021, the stock price of Roblox Corporation (NYSE:RBLX) has increased by over 40% YTD and has outperformed the S&P 500 Index, which has experienced an increase of around 23% during the same period.
Jefferies Group shared its stance on Roblox Corporation (NYSE:RBLX) in its Q3 2021 investor letter. Here’s what the firm said:
“If we look at the Metaverse concept with more lenient guidelines for interoperability, then it becomes easier to see why certain companies are being referred to as Metaverse. On the virtual side, we’d point to companies like Epic Games, TakeTwo and Roblox. In augmented reality, it would be Niantic and SNAP. These are the large capitalized players in the space but albeit, not the only ones. We expect new mulit-billion dollar companies will rise as the Metaverse becomes more mature.
Roblox is a good example. The content is almost entirely user generated, the engine that powers the developer studio is provided by Roblox and developers/creators share in almost all the money that users spend on the platform. In addition, many of the items that you purchase in the avatar marketplace, or even a branded experience like Vans World, can be taken across experiences. Roblox talks a lot about platform extension, which would move the platform beyond just gaming/leisure experiences and into education and workplace offerings. The developer community has the capability to build tools for other developers, there are professional studios being built on the platform and many consumer-facing brands/content are partnering with Roblox to ensure a virtual presence. Roblox actually has a lot of the pieces for our utopian definition of Metaverse, but things like technology, interoperability with outside platforms and a dynamic, two-way economy are what’s missing. However, given our thesis that full interoperability is somewhat unrealistic, it’s easy to see how Roblox fits the definition…"
