Is Roblox Stock A Buy Right Now As It Reports Key November Metrics?

San Mateo, Calif.-based Roblox (RBLX) is simply a fashionable video crippled level that is considered a play connected the emerging metaverse, a next-generation mentation of the internet. After soaring much than 40% successful its latest quarterly net report, is Roblox stock a buy successful the existent banal marketplace correction?

Early Wednesday, Roblox reported cardinal metrics for November. The institution said regular progressive users were 49.4 million, up 35% twelvemonth implicit year. Estimated bookings for November were betwixt $208 cardinal and $211 million, up 22%-24% twelvemonth implicit year. Estimated mean bookings per regular progressive idiosyncratic was betwixt $4.21 and $4.27, down 8%-9% twelvemonth implicit year. The institution sees November income betwixt $184 cardinal and 187 million, up 84%-87% twelvemonth implicit year. RBLX banal dived astir 10% successful greeting trade.

RBLX Stock IPO

The Roblox banal archetypal nationalist offering (IPO) via nonstop listing occurred connected March 10 with a suggested terms of 45 per share. With a nonstop listing, nary caller shares successful the institution are created and sold. Nor did the Roblox IPO rise immoderate capital. Instead, existent investors statesman selling already existing shares based connected request erstwhile trading opens.

On March 10, Roblox banal closed astatine 69.50, much than 54% supra the 45 IPO price. A immense terms percent summation connected the IPO time indicates beardown organization backing.

The company's eponymous "Roblox" crippled is the biggest mobile crippled of 2020 successful the U.S. successful presumption of revenue, according to Sensor Tower. It surpassed "Candy Crush," which had been the apical crippled for the past 3 years.

Roblox reported having 32.6 cardinal regular progressive users astatine the extremity of 2020, up 85% from the year-ago period. Revenue jumped 82% successful the twelvemonth to $924 million. It had a nett nonaccomplishment of $253 cardinal successful 2020, vs. a $71 cardinal nonaccomplishment successful the anterior year, according to the Roblox IPO filing.

What makes Roblox antithetic from different online crippled platforms is that it lets users make their ain games. Developers person 30% of the proceeds generated from a game, specified arsenic the merchantability of virtual outfits and avatars.

On Nov. 9, Roblox reported strong third-quarter net results. The institution reported bookings of $637.8 cardinal successful the September quarter, up 28% twelvemonth implicit year. Average regular progressive users accrued 31% from a twelvemonth earlier to 47.3 cardinal successful the 3rd quarter. That showed an acceleration successful maturation from the 2nd quarter, erstwhile users roseate 29% to 43.2 million. Time spent connected the level roseate 28% twelvemonth implicit twelvemonth to 11.2 cardinal hours successful the September quarter. In the 2nd quarter, engaged hours grew 13% to 9.7 billion.

Roblox earned an adjusted 5 cents per stock connected gross of $509.3 million. Sales jumped 102% twelvemonth implicit twelvemonth for the 3rd quarter.

Roblox Stock Is A Metaverse Investing Play

What is the metaverse? The metaverse is considered a next-generation mentation of the internet. Technologists picture the metaverse arsenic a persistent, shared, 3D virtual environment. There, radical conscionable for activities ranging from playing games to conducting business. It incorporates specified technologies arsenic virtual world and augmented reality.

Mark Zuckerberg, present the main enforcement of Facebook genitor Meta Platforms (FB), describes the metaverse arsenic "an embodied net that you're wrong of alternatively than conscionable looking at."

"The metaverse is bigger than gaming," said Christina Wootton, Roblox vice president of marque partnerships. "We're ushering successful this caller class of quality co-experience. It's an immersive spot wherever radical tin travel and link with 1 different and person shared virtual experiences. They tin bash things together, specified arsenic work, learn, play, store and acquisition entertainment."

Metaverse Stocks To Buy And Watch

Meta Platforms, Microsoft (MSFT) and Nvidia (NVDA) are among the apical metaverse stocks to ticker successful the metaverse space.

Meta Platforms is trying to regain its cardinal 50-day moving average. The institution has invested heavily successful virtual world and augmented world arsenic it builds Zuckerberg's imaginativeness of the metaverse.

Microsoft is planning metaverse apps for gaming, similar imaginable transformations of "Halo", "Minecraft" and "Microsoft Flight Simulator" into afloat 3D worlds. The IBD Leaderboard banal is trying to find enactment astir its 50-day line.

Nvidia is besides backmost astatine its 50-day enactment for the archetypal clip since an Oct. 25 breakout past a cup base's 230.53 bargain point. On Nov. 9, Chief Executive Jensen Huang touted Nvidia Omniverse, a virtual satellite simulation and collaboration level for 3D workflows.

Roblox Stock News

On Sept. 1, Roblox announced the motorboat of Vans World, an interactive Vans skateboarding satellite experience. Vans World is simply a metaverse playground wherever players tin execute tricks and customize Vans cogwheel and apparel, portion hanging retired with their friends.

On Nov. 18, Nike launched an immersive satellite acquisition — called Nikeland — connected Roblox. Players volition beryllium capable to participate a integer showroom to formal their avatar successful Nike apparel and cheque retired the company's latest products.

On Nov. 19, Roblox held a well-received expert time event successful which Roblox executives discussed the company's penetration of caller markets specified arsenic acquisition and music. The institution besides said it believes each user brands volition request a Roblox strategy successful the adjacent 3 to 5 years.

Morgan Stanley expert Brian Nowak reiterated his overweight standing connected Roblox banal and raised his terms people to 150 from 88.

RBLX Stock Price And Technical Analysis

Roblox banal surged much than 42% connected Nov. 9, breaking out past a 103.97 buy point successful a consolidation — according to IBD MarketSmith illustration analysis. The catalyst was the company's beardown earnings. Shares are trading astir 30% disconnected their 52-week high, and are investigating their cardinal 50-day moving average.

Bullishly, the stock's relative spot line surged to caller highs successful the aftermath of the stock's breakout move. But that method indicator has fallen dramatically during the stock's crisp pullback. The RS enactment measures a stock's terms show vs. the wide market.

According to the IBD Stock Checkup, RBLX stock has a humble 71 retired of a cleanable 99 IBD Composite Rating. The Composite Rating — an casual mode to place apical maturation stocks — is simply a blend of cardinal cardinal and method metrics to assistance investors gauge a stock's strengths.

Is Roblox Stock A Buy Right Now?