Metaverse Stocks Investors Should Not Forget

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    Like Apple (NASDAQ:AAPL) and metaplatform (Nasdaq: Meta) Once you enter the Metaverse through combat, it's easy to forget about Roblox (Nasdaq: RBLX) is a virtual space drama that has proven how lucrative the market is, especially for younger viewers. In reality, the Metaverse is more like play and work. Roblox's platform shows how deep digital “experiences” can go, and how universes like the Metaverse can connect us in ways we never imagined.

    With the term “Metaverse” poised to hit the headlines (again) in 2024, Roblox will be a stock to watch as it climbs out of the hole it fell into in late 2021 and early 2022. Wall Street's outlook for the company over the next year. Personally, I think Wall Street is being a little too cautious on Roblox stock, as Metaverse could make a big comeback in the new year as Apple looks to test the market with its Vision Pro headphones.

    It's not hard to imagine that many people underestimated Metaverse games like Roblox this year. I have to be bullish on this stock as the company looks to expand its ecosystem in 2024.

    Roblox's recent momentum could continue and Metaverse hype could grow again

    In fact, generative artificial intelligence (AI) has been the hottest technology trend over the past year, and while it looks hard to top, the metaverse is a topic that attracts some followers of generative AI. I think it's on the rise again. Investor. AI, you're a little too ahead of your time.

    Apple's huge user base will begin to explore entirely new media (augmented reality and virtual reality) that could replace the PC. It remains to be seen whether Roblox will release the Vision Pro app any time soon, as many companies seem to be holding it back in the early stages. Either way, the power of Roblox cannot be underestimated, as the Metaverse investment theme appears to be heating up again.

    Just last week, Ross MKM reiterated its buy rating on RBLX stock (with a price target of $50.00, implying a 23.7% upside), expressing belief that this year could be a “bright” year for the company. . Ross analysts Eric Handler and Rohit Kulkarni both like the stock and its “very attractive setup,” which could lead to more bookings. increase.

    Agree. Handler and Kulkarni understand Roblox's growth story. With so many avenues for growth and monetization, it might be a mistake to think that Roblox stock is destined for another year of stability.

    Roblox stock has performed well since bottoming out in the fall, and is currently up about 60% from its 52-week low of about $25 per share. Track Roblox if you believe Metaverse trends can come back into the limelight while Roblox remains committed to growth despite its recent 13% retracement from its 52-week high still looks very interesting.

    Roblox has a wide moat, but it also has competitors.

    Roblox's ecosystem is impressive and serves as a flywheel for growth as more users create content and gain engagement from other players. With so many different worlds and experiences for players to enjoy, the possibilities for gathering with friends in digital venues are nearly endless. However, his Roblox isn't the only video game company implementing this model.

    Fortnite is a hugely popular battle royale game, but recent updates have made it look a lot like Roblox. With its wide selection of user-created worlds and games, Fortnite stands out as a potential threat that could take away much of Roblox's share, especially from older gaming audiences.

    Luckily, Roblox does its best to stay connected to its users as they age. Industry trends are certainly changing as new industry competitors emerge, but I wouldn't be quick enough to take Roblox out of the game.

    In our previous article, we emphasized the importance of staying attractive as users age. Roblox has been doing pretty well so far, but it remains to be seen whether it can outperform its growing rival in terms of engagement.

    Do analysts think RBLX stock is a buy?

    RBLX stock is a Moderate Buy on TipRanks. Of the 22 analysts who have rated the stock, 15 have recommended it as a buy, 4 have rated it unchanged, and 3 have recommended it as a sell. RBLX's average price target is $44.74, suggesting 10.7% upside potential. Analyst price targets are as low as $21.00 per share and as high as $55.00 per share.

    Roblox stock final line

    There's a lot to like about Roblox stock as the Metaverse looks to be in the spotlight again this year. While Roblox has significant potential to gain traction in 2024, investors should also keep an eye on its competitors as more and more companies realize the economic benefits that can be gained in the Metaverse and its ilk. There will be.



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