Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:

Archive:

  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

Roblox could jump 25% and offers investors exposure to multiple growth 'megatrends,' JP Morgan says (RBLX)

Published by Business Insider on Wed, 05 May 2021


<p><img src="https://static3.businessinsider.com/image/5f849251c255d800190b9557-1800/davidbaszucki_builderman.jpg" border="0" alt="Roblox CEO David Baszucki" data-mce-source="Roblox" data-mce-caption="Roblox CEO David Baszucki introduces one of the new Roblox games."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p><a href="https://markets.businessinsider.com/stocks/rblx-stock">Roblox</a> stock could jump 25% and offers investors "exposure to multiple growth megatrends, including mobile gaming, social networking, user-generated content, and digital identity," JP Morgan analysts wrote on Monday.</p><p>In a note to clients, analysts led by Alexia S. Quadrani said that Roblox is set to outperform due to its involvement in key megatrends, its rising user base, and increasing average revenue per user.</p><p>The analysts initiated coverage of the online gaming platform with an "overweight" rating and an $85 price target in their note.</p><p>The price target implies a potential 25% jump in share prices from Tuesday's intraday low of $67.84.</p><p>Quadrani and her team said that pandemic restrictions have led to outsized increases in users and revenue per user at Roblox, but added that they expect an "up and to the right" progression from here.</p><p>The JP Morgan team also highlighted Roblox's dominance with a younger audience. Roughly two-thirds of Roblox users are under the age of 17 and spend an average of two and a half hours per day on the platform.</p><p>Quadrani said that this audience could provide Roblox another way to monetize its platform moving forward. Advertising for the hard-to-reach younger demographic could be lucrative for Roblox if they can maintain their customer base.</p><p>Besides advertising, the team of analysts also touched on Roblox's push towards a "metaverse." The "metaverse" is a collective, virtual shared space, created by the convergence of virtually enhanced physical reality and a virtual space.</p><p>The term is gaining popularity, and some investors are evening purchasing "<a href="https://www.businessinsider.com/metaverse-digital-real-estate-investing-strategy-tips-republic-janine-yorio-2021-4">digital land</a>" on "metaverse" platforms like Decentraland for as much as $74,300.</p><p>Roblox has already held <a href="https://www.insider.com/lil-nas-x-roblox-concert-experience-live-performance-holiday-new-2020-11">several high-profile concerts</a> and teased applications in education and business communication for its "metaverse."</p><p>Even without revenue from the "metaverse" Roblox is set to outperform, according to Quandrani.</p><p>"We believe execution on this model alone can drive steady long-term returns for investors, with significant optionality tied to several drivers, including advertising, e-commerce, and the wider Metaverse opportunity," Quadrani wrote.</p><p>Quadrani's $85 price target comes from a 21x multiple on estimated 2022 revenue, which is a slight premium to Roblox's peers, the analyst said.</p><p><a href="https://markets.businessinsider.com/news/stocks/roblox-stock-price-jump-offers-investors-exposure-growth-megatrends-jpmorgan-2021-5-1030386549#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/worlds-most-expensive-liquid-thoroughbred-horse-semen-2020-3">Why thoroughbred horse semen is the world's most expensive liquid</a></p>
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs