ROBLOX - High Risk Metaverse Stock Analysis for Investing 2022 and Beyond

Companies / Metaverse Dec 28, 2021 - 09:00 PM GMT

As you know after dumping 80% of my AI stocks portfolio during the summer months I went on a high risk stocks buying spree, where ROBLOX was at the top of that list along with Western Digital and Corsair given the importance of GAMING, of which the 'metaverse. is a subdivision of. For if it is not already clear, the metaverse's are basically online gaming environments. UNFORTUNATELY, to date I have bought NO ROBLOX, for the reason that I deem the stock to be a lot higher risk than either Corsair or WDC given that it is along way from making any profits. The stock has soared to $125 on the back of Facebook's metaverse announcement and improving financials, though still makes a loss. The stock is trading on an eye watering Market cap of $64bn! That's on annual sales of $1.6 billion.

However the key metric to focus on is the number of monthly users where I am not seeing much growth during the past 3 quarters, though it looks like Roblox tends to get a spike in new users in the final quarter of the year, so Q4 should see a jump in paying users.

Roblox reported losses of $134 million for the 9 months to Sept 30th on sales of $1.6 billion. However hidden away in their accounts is the fact Roblox are rampant stock printers, the management awarded themselves $222 million in shares! Against $30 million for the same period last year. Whilst share holders were diluted to the tune of 460 million new shares. There's nothing much appealing to an investor in the financials which explains why I have yet to buy.

What stands out from the stock chart is -

a. Breakout to new highs above $104.

b. There is a large gap on the chart between $83 and $93 and gaps tend to eventually get filled.

c. Strong Support in the zone of $67 to $80.

The bottom line is Roblox is definitely a high risk stock, they are printing a lot of new shares, so a lot of shareholder dilution is going on at the moment, and likely for some years to come which means there should be plenty of opportunities to buy Roblox in the future for all it takes is one earnings miss and Roblox will be back to well below $100. So I remain in no rush to buy Roblox and definitely not anywhere near the current price of $124. Instead I would seek to buy a small stake on a retracement back to well below $100, perhaps to fill the gap down to at least $80, and likely a deeper retracement than that. My existing buying level for Roblox is $65 which I am now raising to $80 which is the approx price I will be seeking to gain first exposure to Roblox. Though remember folks THIS IS a HIGH RISK STOCK! It could both DOUBLE and HALF with ease.

This article is an excerpt from my recent extensive analysis covers how to invest in the metaverse - Best Stocks To Profit From the $1+ Trillion Emerging Metaverse Mega-trend

Contents:
VR and Gaming Becomes the Metaverse
A Video Message from Your Metaverse Analyst
PRIMARY META-VERSE STOCKS
QUANTUM AI METAVERSE STOCKS
METAVERSE STOCKS UNIVERSE
Google Glass a Big Fat FAIL
META (Facebook) Dominating VR
APPLE AR Headset Coming 2022
ROBLOX - High Risk
TENCENT- Chinese High Risk GAMING
XXXXXX - CAD - $254 RISK - 3 OUT OF 10
XXXXXX - RISK 3 OUT OF 10.
XXXXXX NEW LIFE FOR AGEING GAMING GIANT? RISK 2 OUT OF 10
XXXXXX - DIGITIZING THE REAL WORLD - RISK 8 OUT OF 10
INTEL Black Friday Sale!
IBM The REAL Quantum Metaverse STOCK!
NVIDIA THE KING OF THE METAVERSE!
XXXXX
AI Stocks Portfolio Current State
AI Stocks - What's Cheap
AI Stocks - What's far value
AI Stocks - What's expensive?
Stock Market Trend Forecast Current State
Current State of Cathy Wood ARKK Garbage
RIVIAN IPO Illustrates We are in the Mother of all Stock Bubbles
DECENTRALAND
SANDBOX
How to Get Rich in the MetaVerse
Bitcoin Trend Analysis
Crypto Current Portfolio
Covid19 Winter Storm Fuel for Financial Crisis 2.0
OMICRON - The 'Oh Dear' Worst Ever Covid Strain?
Consequences for the Stock Markets?
Financial Crisis 2.0 Current State - TAPERING
Financial Crisis 2.0 Stock Market Bubble Investing Strategy
Why You Should Not Fear a 50% Draw down in Your Stocks Portfolio
What's driving asset price inflation?
Inflation Forecasting a Recession In 2022
UK Inflation Hits 30 year High of 6%
UK Energy Customers Falling into Energy Firms Fixed Rate Tariffs Trap
Fin tech Stock - NEW STOCK

The whole of which was first been made available to Patrons who support my work. So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

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What is the CI18?
CI18 Trigger Feb 2020
Existing Stock Market Trend Forecast
Stock Market VIX
Stock Market December Trend
OMICRON THE STRAW THAT BROKE THE CAMELS BACK!
MUTED SANTA RALLY
The Alibaba Stock Market
ARKK Garbage
Stocks Bear Market of 2022 May Have Started EARLY!
Facebook $301 Buying level achieved.
Recession 2022
Quantum AI Tech Stocks Portfolio
Crypto FLASH CRASH Early Christmas Present

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Contents:
Financial Crisis 2.0 Checklist
The China Syndrome
Stock Market Begins it's Year End Seasonal Santa Rally
Stock Market Trend Forecast Current State
INVESTING LESSON - BUYING VALUE
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock
INVESTING LESSON - Give your Portfolio Some Breathing Space
INVESTING LESSON - Give your Portfolio Some Breathing Space
How Stagflation Effects Stocks
INTEL Bargain - 15.5% Discount Sale
Why Intel stock price dropped 15%?
FACEBOOK - 10% DIscount
IBM - 20% Discount
Amazon - 5% Discount
APPLE 4% Discount
AMD $136 on Route to $200
TSMC - $117
Microsoft $336
Google $2980, PE 28.7, EC 30.
Nvidia Leaves planet Earth - $299, PE of 106
Heads Up on NEW Potential Tech Stocks
AI Stocks Portfolio Updated Buying Levels
AI Stocks Buying Plan B
FREE TRADE the Perfect Stocks and Shares ISA?
FREE SHARE FROM FREETRADE
High Risk Stocks Brief
Crypto's 20% Discount Event
Bitcoin Trend
Palladium Brief

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So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per. https://www.patreon.com/Nadeem_Walayat.

My analysis schedule includes:

High RIsks Stocks Portfolio Quarterly Review
UK House Prices Trend Analysis, including an update for the US and a quick look at Canada and China - 65% done
How to Get Rich! - 90% done - This is a good 6 month work in progress nearing completion.

US Dollar and British Pound analysis
Gold Price Trend Analysis - 10%

Again for immediate access to all my work do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

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Your metaverse invested analyst.

Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 35 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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