Markets have experienced a lot of volatility following the increase in volatility, rising interest rates, and the global economic consequences that could be seen in the war in Ukraine. High -growth industries are among the most disadvantaged businesses, including those related to the development of the metaverse.
The metaverse is in its infancy and the digital worlds are filled with new technologies and a lot of computing power that can take over a wide range of industries, including gaming, sports, real estate, media. , stores, and more.
This combination of market volatility with a young, growing industry, more importantly, has led some investors with promising opportunities to see their prices fall for a more stable reason than ever before. the arrest of the free agent market. For example, a company is poised to benefit from the metaverse revolution and is poised to benefit shareholders who buy when shares are selling at 76% annually to date.
Image source: Getty Images.
Roblox is ideal for metaverse publishers
Roblox (RBLX -6.88%) a platform and gaming system that allows its users to develop video games and play games created by others. Serving as one of the cleanest games in the rapidly expanding metaverse, many of the games featured on its platform are about worlds where people can meet and interact. After receiving a claim during the worst of the disease, Roblox’s business took a break from the comparison. That said, when the same metrics are compared and the metaverse revolution takes place most of the time, the industry is likely to benefit from strong growth.
Roblox management reported a combined first quarter starting in 2022. Its top line rose 38.8% year -over -year from $ 537.1 million, and its bottom line ended a good $ 0.27. Not for each unit, which missed the estimates but was further improved from its $ 0.46 per unit. in the same quarter last year. The number of books declined 3.2% to $ 631.2 million, coming under the estimates of analysts.
The books show how much of his virtual currency, called Robux, allows users to buy virtual objects such as avatars and accessories on the playground. Investors should pay close attention to this metric, as it is a very good indicator of how the industry is performing. The company doesn’t know how to make money until Robux can sell the items.
Daily users (DAUs) jumped the threshold by 28.5% year -over -year to 54.1 million, but the average number of books for DAU was down 24.6% to $ 11.67. Players are spending more time at Roblox, however, with total hours rising 22.2% year -over -year in Q1, to 11.8 billion.
The main concern is whether the business can continue to grow properly in search of revenue. Investors can expect significant growth in the future as the industry continues to battle on different metrics from last year. But given the potential length of the metaverse and the size of the business’s selling price, which currently sits at 7.3, the price is really worth it today.
High risk with potential for running wins
Roblox stock is young, tough, and built for fearless investors with a gut to navigate ups and downs. The business isn’t much better, and while its user base has expanded and expanded in its last quarter, growth is expected to rest for the foreseeable future. In addition, the metaverse is a foreign concept to many customers, so it can take several years for the concept to gain significant traction. But Roblox’s long -term power is through the house.
Although his income may be low in the near future, the business should not be viewed as a short -term investment. In the long run, this price could increase significant profits for investors willing to borrow and buy shares at current price levels.
Luke Meindl has no position in any of the aforementioned archives. Motley Fool has a position and promotes Roblox Corporation. Motley Fool has an advertising policy.