Roblox is trading in record high territory amid investor enthusiasm for its position as a leader in the emerging metaverse. Roblox stock rose for the seventh straight day on Friday.
The San Mateo, Calif.-based company held a well-received analyst day event on Tuesday. And last week, Roblox reported better-than-expected third-quarter results.
Roblox today provides a platform for playing video games and socializing in 3D virtual worlds. But Roblox stock is considered a play on the metaverse, a next-generation version of the internet.
Morgan Stanley analyst Brian Nowak on Wednesday reiterated his overweight, or buy, rating on Roblox stock and raised his price target to 150 from 88.
Roblox Stock Rises
In midday trading on the stock market today, Roblox stock rose 8%, near 136.20. On Thursday, it notched an all-time high of 138.77.
In a note to clients, Nowak said he came away from Roblox's analyst day incrementally more bullish on the company's prospects. That includes its "early metaverse leadership," he said.
At its analyst day, Roblox executives discussed the company's penetration of new market such as education and music. The company also said that it believes all consumer brands will need a Roblox strategy in the next three to five years.
Nike Joins Roblox Platform
The latest major brand to create a virtual playground for customers on Roblox is Nike. The athletic footwear and apparel brand opened its Nikeland site on Thursday.
The virtual world is modeled after the company's real-life headquarters in Beaverton, Ore. It includes fields and arenas for online players to compete in various minigames, ranging from tag and dodgeball to "The Floor Is Lava."
Other brands that have recently created virtual worlds on Roblox include Chipotle Mexican Grill and Vans, a VF Corporation brand.
On Nov. 9, Roblox stock broke out of a 22-week consolidation pattern at a buy point of 103.97, according to IBD MarketSmith charts.
Roblox stock is on the IBD 50 and Leaderboard watchlists.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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