Investors may want to keep an eye on metaverse stocks, like Roblox (RBLX).
For one, even though the metaverse has been a substantial money-loser, don’t write it off just yet. Thanks to generative AI, which is expected to accelerate the development of the metaverse with a combination of immersive virtual worlds and games, social interactions, virtual economies, and AI-enabled user creation.
Two, as noted by Activate Consulting, “there will be more than 600 million metaverse users by 2026. In fact, “there are already 300M+ active users in Metaverse video games and virtual world platforms; with Generative AI as the enabler, we forecast that there will be over 600M people in the Metaverse within three years.”
With that, one of the companies to keep an eye on is Roblox.
According to Canaccord analysts, “Roblox began as a gaming hub for young kids featuring blocky avatars and simplistic games built by hobbyists, but over time the platform has evolved to become one of the leading destinations for immersive gaming and social interactions in persistent virtual worlds,” as quoted by Barron’s.
The firm also initiated coverage of RBLX with a buy rating, with a price target of $48 a share.
Even better, Roth MKM just upgraded the stock to a buy rating, and raised its price target to $48. Benchmark analysts also upgraded the stock to a buy with a $45 price target.