Investment analyst Clay Griffin of MoffettNathanson, a boutique research firm, expressed skepticism about Roblox’s metaverse vision in a new report. Griffin suggests that Roblox’s vision for the future of the sandbox gaming platform and the metaverse may be overstated, and his efforts to focus on the big picture simply overshadow the current setbacks the company is facing.
An article published by MarketWatch and distributed via Dow Jones Newswire states that the analyst’s report, titled Roblox: Growing Pains, Initiating at Underperform, $ 19 PT, describes Roblox’s experiences as “light and derivative,” which may explain why the company promotes its core vision. for the metaverse rather than facing today’s challenges.
“But in an increasingly crowded market here and now, Roblox looks set to steer the narrative towards a distant and, in our opinion, rosy image of the future,” Griffin wrote. “And, of course, his larger role in that. “
Roblox’s stock value has dropped to around a third of its value this year. In 2021, the company reached its peak capitalization of $ 78 billion, while the cap was only $ 20.7 billion as of October 3.
However, Griffin isn’t just about Roblox. He wrote that he expects a “reasonably good margin profile” for the Metaverse company. However, he isn’t convinced that “Roblox’s reality will be as big as his vision of him.” Noting that Roblox is and remains primarily a gaming platform, he suggested that advertising could be “material” for the company. However, he suggested that it is too early to say what impact these advertising strategies might have on the company as a whole.
He also noted that Roblox continues to ride the wave of some of the expectations of what he considers “metaverse craze,” notably citing the NFT craze that swept the investment world between late 2021 and 2022.
The analyst suggested a price target of $ 19, compared to the company’s Friday closing price of $ 35.84.
Roblox has made great strides in rebranding itself as a metaverse company for people of all ages and walks of life, in contrast to the company’s long-standing image as a children’s play company. It recently changed the Entertainment Software Rating Board (ESRB) age rating from ten and older (E10 +) to teen (T) and introduced voice chat for users aged 13 and over. Some of these efforts to appeal to an older audience appear to be working – users aged 13 and over now account for more than half of the players on the platform.
Whether Griffin’s analysis is correct or not, there is no doubt that the Roblox of the future will be very different from the Roblox of the past.
You can take a look at the best Roblox games in 2022 to decide if Griffin is right to be skeptical of the platform’s popularity. Also, be sure to grab free avatar gear with codes from our Roblox promo code list for October and visit our Roblox music codes for October for songs to play on your boombox.