The Roblox share price has been on fire in recent days. Since November 8, the value of the gaming platform provider has increased by an incredible three quarters. Compared to the IPO, when the stock was traded on March 10 at a price of USD 64.50, the price has even doubled.
The main reason for the recent ride of the stock lies in the latest quarterly figures. For example, the online game specialist posted surprisingly strong customer growth in the third quarter thanks to strong demand for box office hits like "MeepCity" and "Adopt Me." Overall, the volume of bookings in the quarter just ended rose by 28% to USD 637.8 million, exceeding expectations.
In addition, the popular children's gaming site saw a significant increase in gamers in the third quarter. Daily active users increased by 31% to 47.3 million, spending a sensational total of 11.2 billion hours on the platform. Even though the company is still in the red, it also showed improvement on the earnings side. On an adjusted basis, Roblox reported a loss of 13 cents per share, compared to estimates of 14 cents per share.
The positive interim report is not the only thing playing into the hands of the San Mateo, California-based group at the moment. Investors are also increasingly looking for "metaverse" exposure after Facebook changed its name to Meta Platforms and adjusted its strategy toward virtual reality. To date, Roblox is one of the few that are already successfully operating in the parallel world and generating significant revenue in the process. For example, Roblox sells digital money on the platform, which users can in turn spend on virtual experiences and items for their avatars.
In this regard, Roblox has managed a mega deal in the past few days. The world's largest sporting goods manufacturer Nike is moving in with its virtual headquarters "Nikeland" on the video game platform. This makes Nike one of the first big brands to enter the metaverse. On Nikeland, users can put their avatars in sportswear with the Swoosh on it, on the one hand, but also transfer real-life movements with their smartphones to online games. But Roblox isn't just enticing users with more and more shopping options; the company is also hosting virtual concerts featuring artists like Twenty One Pilots and rapper Lil Nas X.
Roblox's recent interim report showed that its strategy is bearing fruit. The positive trend could continue: "Based on our October results, we appear to be off to a good start in the last quarter of the year," said Chief Financial Officer Michael Guthrie. The analyst guild also sees black, and in a positive sense. For the final quarter, the forecast range of USD -0.15 to +0.26 cents per share is relatively wide, but the median estimate is a small profit of USD 0.01 cents per share. Sales are expected to rise to just under USD 793 million, which would be a fifth higher than the third quarter.
Despite the bright outlook, the recent jump in Roblox's share price has caught up with or overtaken research firms' price targets. The majority of analysts are still giving the stock a thumbs-up, but the median estimate of USD 123 is only at the current price level.
For the new Softcallable Barrier Reverse Convertibles, stagnation would not be a problem at all. Even possible moderate setbacks in the Roblox share price are taken into account in the product structure, so that the promised double-digit percentage return is not immediately jeopardized. The two products, which are offered in CHF and USD, each have a risk buffer of a comfortable 40%. If the barrier remains intact during the maximum term of 15 months, the maximum profit will be achieved. The coupons amount to an above-average 12.00% p.a. for the CHF version and even 13.60% p.a. for the USD product. The issuer has the right to call the Barrier Reverse Convertibles prematurely after six months at the earliest.
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