Roblox Stock Rallied 13% Today, Is the Metaverse Leader Bouncing Back?

Trade Roblox Stock Your Capital Is At Risk
Ollie Martin
Updated: 31 Jan 2022

Key points:

  • Roblox stock rallied 13% in mid-market trading with no particular company news
  • After a heavy sell-off, are bulls looking to get involved once again?
  • As the metaverse sparks attention, investors should pay attention to Roblox

Amidst a backdrop of new-age tech, EV hype, and a revolving race for the Covid-19 vaccine, decentralization was a prominent theme of 2021; slowly becoming more of a reality as cryptocurrency and blockchain started to plant roots amongst emerging cultural trends. The word ‘metaverse’ started to gain serious traction; to which NFT’s and the creation of digital worlds followed in a natural progression. 

new-recommended-broker-banner

As a new step in social technology, the metaverse is still a relatively new concept, especially for investors. Roblox (NYSE: RBLX), a platform that allows for users to build and share their own games – was one of the flagbearers for the metaverse – but as retail excitement died down, Roblox followed the path of the other depreciating meme stocks. 

Roblox as it stands is a leader in its respective field, yet you wouldn’t think so looking at recent stock movements. Roblox stock showed a steady increase from its March IPO, before really taking off in November, reaching heights of $135. Since then, however, sellers have dominated the stock, pushing price down to all-time lows of $58. 

Read Also: Best Tech Stocks To Buy Now

Albeit, investors shouldn’t lose faith just yet. Today’s 13% price surge came irrespective of any particular company news or announcement; so it seems that metaverse investors might be beginning to stir once again. The special thing about Roblox is its infinite space for diversity; the platform can be used for advertising, e-commerce, gaming, and more; with Nike illustrating its social possibilities with the creation of NIKELAND, followed by a similar project by reality TV star Paris Hilton. 

Roblox has a head-start in the social, decentralized space that is the Metaverse. Investors today might have been merely opportunists cashing in on the company’s sharp sell-off, but whatever the reason, my belief is that Roblox is a stable long-term option as decentralization creates entirely new economic and social landscapes. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .