Roblox (RBLX Get Roblox Report shares rose sharply Tuesday amid enthusiasm over the company’s investment day, which included explanation of its commitment to the metaverse.
The stock closed at $116.18, up 7.5%. It has skyrocketed 53% in the past month, driven by strong fundamentals.
Roblox addresses the eight fundamentals of the metaverse, CEO David Baszucki said at the investor event, MarketWatch reported. That includes identity, friends, immersive, low friction, variety, anywhere, economy and civility.
He said Roblox benefits from a total addressable market of $200 billion or more in each of the mobile, streaming content and social media segments.
Roblox on Monday announced it has invested $10 million to help develop three games for middle-school, high-school and college students.
“Our vision with Roblox Education is to empower students and educators to explore learning online, both through the integration of Roblox Studio in STEM curricula and through immersive educational experiences on our platform,” the company said.
Last week, San Mateo, Calif.-based Roblox reported that bookings increased by 28% in the third quarter. Revenue, excluding deferred revenue, soared 102% to $509.3 million.
The company’s net loss widened to $74 million from $48.6 million. It attributed that to the cost of growth.
Morningstar analyst Neil Macker put fair value at $100 for Roblox last week.
“We are maintaining our narrow moat and are raising our fair value estimate from $90, due to faster daily-active-user and engagement growth,” he wrote in a commentary after the company’s earnings report.
“Roblox posted a strong third-quarter bounce-back, as revenue met and EBITDA beat FactSet consensus.”
