To The Moon

Riding the metaverse

The metaverse concept has been a much debated one especially after Facebook reoriented their strategy last year so much so they even changed the company's name to reflect that. That is how much the management believed inthe way going forward and the future of the new world and economy. 

However, Facebook or should I call them $Meta Platforms, Inc.(META)$instead was never the first one to venture into the metaverse concept. There were other companies which had already created an ecosystem based on that concept, early adopters if you may so, and one of such company is $Roblox Corporation(RBLX)$. They have created a virtual environment which was already popular among the children but their platform took hold and gained popularity during the pandemic. This created a surge in users which created the phenomenon they are now.

The thing about children is when they are immersed in something at a young age, they will create an attachment to it and if that something grows along with them and remain relevant as they age, that becomes sort of a formidable force. Just think Macdonalds and Star wars.Hence, if Roblox plays their cards well, they might be a force to reckon with in the future.

Admittedly, there are a few wrinkles to iron out. But if management can sail the boat competently, they have a huge following to capitalise on, especially when they reach the age when they have financial clout and independence. That is why we see management trying to implement an ecosystem which includes the adults. However they are also trying their best to keep the place as safe as possible.

The latest results bode well for the company. It is good to see that they are growing post pandemic and doing well to sustain growth. Nowthe trick is to monetise the users which they have not really done so far beyond the use of Robux. I believe the company has a strategic plan to do this and ad tech is most likely one they are looking into.

I believe they are still early in their growth andonce they tide over this macroeconomic downturn, they will be one of the companies featuring strongly in the metaverse world.

Thanks for reading. 😊