Or not so keen if they’re forking out for Robux — the platform’s virtual currency — like I do occasionally for my daughter (if she’s been good).

But this is precisely why I invested in the company — its extreme relevance with younger generations. Indeed, I would say only YouTube and TikTok are as popular with most young Western kids today.

Some may see that as a sad indictment of our times, but that’s the reality we’re living in.

From an investing perspective, getting in early enough on consumer platforms that tens (or hundreds) of millions choose to interact with can be very lucrative. Think Netflix (up 905% in 10 years) or Spotify (up 200% in eight years). Meta has also outperformed long term.

Roblox gets called the ‘YouTube of gaming’. Like uploading a video to YouTube, Roblox offers accessible tools that allow creators to build, publish and make money from gaming experiences. And the long-term monetisation potential could be very large.

Which begs the question: why did the stock crash?

Lowered guidance

Unfortunately, Roblox may be familiar to people without young kids due to the negative headlines about predatory behaviour towards children on its platform. As a parent (and shareholder), this is definitely something that worries me.

Therefore, I’m glad to see it has rolled out mandatory age-verification and restricted communication for users who haven’t complied. In its Q1 results released Thursday (30 April), the firm said it has seen a meaningful improvement in relevant safety metrics.

But the platform was banned in Russia in December. And this, combined with ongoing player friction due to the safety measures, has resulted in management lowering its full-year bookings growth guidance to 8%–12% (down from 22%–26%).

Obviously, this is a significant haircut. The stock was already down nearly 50% before this news, suggesting that safety headwinds were already been priced in. But clearly not enough, given the market reaction.

What I’m doing?

Roblox wasn’t a large position for me (and it’s even smaller now!). So what should I do?

Well, for a start, I don’t think the long-term investment thesis is broken. The firm expects full-year revenue growth to be in the range of 20%–25%, and daily active users are still well north of 100m, even if this figure is currently under pressure.

Hours engaged topped 31bn in Q1, up 43% year on year. And while there’s clearly lumpiness with Roblox’s metrics due to the unpredictability of hit games, the long-term trajectory still appears to point upwards.

Crucially, the 18–34 age cohort is now Roblox’s fastest-growing group. These older gamers spend 1.5 times more money on Robux than younger users, proving the platform isn’t just for kids.

To attract more older users, it’s investing heavily in AI to allow creators to build photorealistic experiences and lifelike avatars.

Today, Roblox’s financials are quite messy, as it pays out significant stock-based compensation. Yet the large advertising opportunity (big brands, immersive billboards, etc) remains largely untapped.

I’m going to keep holding my shares. But Roblox is in the higher-risk category, so I don’t think investors considering it should bet the farm.

The post This growth stock just crashed 15% in my ISA! What should l do? appeared first on The Twelfth Magpie.

Recently though, a new growth stock has broken into the 10 largest holdings after surging 150% since April. Let’s take a closer look at this high-flyer.

Metaverse leader

The stock I’m talking about is Roblox (NYSE:RBLX). Parents of kids aged 7-14 will likely be familiar with the gaming firm. Or more specifically Robux, its digital currency that allows players to unlock features and customise avatars.

Roblox often gets dismissed as just a kids’ game, but that underestimates it. It’s more like YouTube for interactive worlds. Just as YouTube doesn’t create videos, Roblox doesn’t do its own games. Instead, it supplies the tools for millions of independent creators, then takes a cut of the Robux spent inside their worlds.

In the year to 30 June, Roblox creators collectively earned over $1bn, and that’s set to go higher in the current period. At its 2025 developer conference, which took place last week, the company announced loads of improved tools, including many with AI capabilities. 

For example, players will be able to trigger actions in games by saying things like “open the door“, while real-time translation will allow two players to communicate in different languages. 

Roblox also signed an IP partnership with Barbie maker Mattel to give creators the ability to build games based on their favourite brands. This follows a deal with Netflix, allowing something similar with franchises like Stranger Things and Squid Game.

Financial performance

The company is putting up very impressive numbers. Second-quarter bookings (often used as a proxy for revenue) rocketed 51% to $1.44bn, while daily active users (DAUs) were up 41% to 112m. 

Notably, about 60% of Roblox users are now older than 13. This demographic is growing the fastest, is more engaged, and has more money to spend.

For the full year, management is estimating bookings between $5.87bn and $5.97bn, and as much as $1.08bn in free cash flow.

Longer term, Roblox aims to attract 1bn regular users!

Reality check

In my eyes, Roblox is morphing into a very powerful platform, with an untapped long-term digital advertisement opportunity. Historically, long-term investors have done very well owning such stocks, even if they had to pay a premium to do so at first.

Having said that, there’s no sugarcoating the fact that this is a very expensive stock. Stripping out cash, Roblox is trading at roughly 15 times its forecast 2025 bookings. And around 84 times expected free cash flow. 

Were sales or user number growth to disappoint — even slightly — the stock could pull back sharply given the hefty price tag. Roblox also pays a lot in stock-based compensation, which dilutes existing shareholders and will have to be reined in at some point. 

Patience

I think investors should consider waiting patiently for a share price dip. I reckon there could be a more attractive opportunities in future.

However, Scottish Mortgage might be worth a look. The trust is heavily skewed towards US growth stocks, which adds risk, but it offers diversification beyond just Roblox. And the shares are currently trading at a 10% discount to the underlying net asset value.

The post Meet the stock that’s skyrocketed into the top 10 of this FTSE 100 fund appeared first on The Twelfth Magpie.

Here are two of them.

Meta

Let’s start with the largest, namely Instagram and Facebook owner Meta Platforms (NASDAQ: META). Shares of the social media giant have rocketed 327% over the past three years, pushing the market cap up to a meaty $1.76trn. 

Fears that TikTok would eat into Meta’s market share appear to have been misplaced. In the first quarter (Q1), the company reported a mind-boggling 3.43bn daily active people across its family of apps.  

Even if some of those are bots, that’s still A LOT of people. And advertisers are forking out to tap into Meta’s massive user base. Ad impressions were up 5% in Q1, while the average price per ad grew 10%. This means advertisers are paying more per ad, on average, to reach users. 

Naturally, a recession could cause a sharp fall in ad spend. Meanwhile, Chinese firms like Temu have already been pulling back on ad spending as high US tariffs and changes in shipping rules bite.

Despite this, I’m confident about Meta’s ability to use artificial intelligence (AI) to cement its dominance and become even more profitable. The company is using machine learning to serve better ads, recommend content, and ramp up user stickiness. 

This is already bearing fruit. Last year, users spent 8% longer on Facebook on average as a result of AI-driven content recommendations. 

By the end of 2026, the firm plans to offer fully automated ad creation and placement tools. Advertisers will just need to supply an image or URL and a budget, and Meta’s generative AI will handle the rest. It’s also monetising WhatsApp with ads.

The stock is trading at 25 times next year’s forecast earnings, falling to 22 times by 2027. At this valuation, I think Meta offers profitable growth at a reasonable price.

Roblox

Next is gaming platform Roblox (NYSE: RBLX). It reported nearly 100m average daily active users in Q1, up 26% year on year. Hours engaged were 21.7bn, up 30%!

Roblox stock has surged 74% this year, giving it a $68bn market cap.

A key risk with the firm is its lack of profitability. The Q1 operating loss was £255m on revenue of $1bn.

However, Roblox reminds me of a mini-Netflix, where content is theoretically unlimited and the advertising opportunity is vast. Unlike Netflix though, it doesn’t make any of its own content. Developers do through Roblox Studios, its game creation platform.

One massive recent hit is Grow a Garden, a farming simulator where players plant seeds and grow crops. It has attracted 8.2bn visits so far!

My young daughter recently said that all she wants for her next birthday is loads of Robux (the platform’s digital currency). While I laughed this off, it did strike home how powerful this company is becoming.

Roblox is continuing to attract older players, and aims for 1bn users long term. The stock is currently pricey, but I think it could still help generate solid long-term returns for Scottish Mortgage shareholders.

Stepping back, I’m bullish on Scottish Mortgage stock too, and think it’s worth considering.

The post 2 top growth stocks that could help drive Scottish Mortgage higher by 2030!  appeared first on The Twelfth Magpie.

The share price recently neared a 52-week high after the firm reported a strong first quarter. However, at $70, it’s still 48% lower than where it was in November 2021.

Quick low-down

As I’m sure most parents of schoolchildren are aware, Roblox is a gaming company. It lets users play and and explore millions of virtual worlds and games. Like YouTube, it’s a creator-driven platform, where developers can earn money from their creations.

As parents will also know, players can customise avatars and unlock features through Robux, the platform’s virtual currency. I finally took the plunge this year, buying my daughter £20 worth of Robux as a reward for doing well at gymnastics. The money lasted less than 24 hours!

A powerful thing I’ve noticed on the platform is the term ‘Bacon’, which refers to default avatars/new users that have brown hair that resembles strips of bacon. Kids nowadays do not want to be labelled a Bacon, leading to increased pressure on parents to buy Robux.

Strong growth

In Q1, Roblox’s daily active users (DAUs) surged 26% year on year to 97.8m, while hours engaged were up 30% to 21.7bn. DAUs in India grew 77%!

So you’ve got more people spending longer on the platform, which is what I want to see as a potential investor.

Bookings jumped 31% to $1.2bn, with monthly unique payers reaching 20.2m, an increase of 29%. Free cash flow more than doubled to $426.5m.

Another thing I want to know is whether Roblox is still attracting users that are older than 13. Encouragingly it is, as this reported cohort grew 36% and now makes up 62% of total DAUs and 64% of total hours. So Roblox is increasingly not just about tween players these days.

All of these numbers were higher than expected. For 2025, management now expects bookings between $5.28bn and $5.36bn, which would represent solid growth of about 22%.

Risks

While Roblox is booming, there are a couple of things that worry me. One is regulatory risk, given that the platform is still mainly for kids that need to be kept safe. Another is extremely high levels of stock-based compensation — over $800m last year! — which continues to depress reported earnings.

Also, after its strong run, the stock’s forward price to free cash flow ratio is approximately 53. This indicates that a lot of growth is priced in.

Finally, while Roblox is fully virtual/digital and therefore insulated from tariffs, it might not be from spending pressures during a recession.

What about the future?

Roblox is confident it can carry on growing at 20%+ and is targeting 10% of the global software gaming market, up from about 2.75% today.

Longer term, it’s aiming for 1bn players. Needless to say, a platform with that many users would be worth significantly more than the current $47bn market cap. That’s because many advertisers will pay up to reach a huge young audience.

I think advertising is a massive long-term opportunity here and I’m interested in investing. I’d just prefer to do so at a lower price, so I’m keeping Roblox on my watchlist for now.

The post Should I buy Roblox for my Stocks and Shares ISA? appeared first on The Twelfth Magpie.

Since then though, they’ve bounced back to 930p and fully recovered. Therefore, an investor who’d bought £5,000 worth of shares at 815p on 7 April would now have roughly £5,700.

Volatility is the norm

That said, this whipsawing demonstrates how volatile the FTSE 100 investment trust is. It tends to really fly when the Nasdaq Composite heads higher, and vice versa.

There are also Asian, Latin American and European stocks in the portfolio, making up nearly 40%. But for better or worse (fortunately the former over the long run), Scottish Mortgage moves with US-listed shares.

Therefore, a potential US recession is a risk to companies’ earnings and valuations. That’s why it’s necessary to take a long-term view with this growth-focused trust.

For perspective though, Scottish Mortgage has survived various crises over the past century, including two world wars, global pandemics, and 15 separate US recessions. It will survive another downturn then keep moving higher, in my view.

Portfolio progress

We’re currently in the middle of Q1 earnings season. So we can assess the progress of some of the trust’s top holdings that have already reported earnings.

Let’s start with Amazon, the third-largest holding. Q1 revenue rose 9% year on year to $155.7bn, with AWS sales jumping 17% to $29.3bn. Amazon’s advertising revenue, which increased 17.7%, is now becoming a meaningful contributor to profits. Overall operating income surged 20% to $18.4bn.

The fourth-largest holding — Meta Platforms — also reported strong growth. Revenue increased 16% to $42.3bn, while the operating margin expanded from 38% to 41%.

Elsewhere, Spotify‘s free cash flow continues to explode higher, rising nearly tenfold in just two years. The Spotify share price has more than doubled in the past year.

Meanwhile, Chinese electric vehicle firm BYD has just reported a doubling of profits as it aggressively expands worldwide. Scottish Mortgage recently wrote: “If BYD is subject to the tariffs on China, it could still one day sell 10m cars or more a year outside the US, including autonomous and rapid charge technology.”

Yesterday (6 May), Ferrari reported a very solid 18% rise in earnings per share.

These are all excellent firms growing strongly. Ultimately, it will be some of these that will help drive Scottish Mortgage’s long-term performance.

Roblox

Another interesting holding that continues to impress me is Roblox (NYSE: RBLX). Shares of the gaming platform are up 75% over the past year.

In Q1, revenue surged 29% to just over $1bn, while bookings grew faster at 31%. Bookings basically reflect the total value of digital currency Robux purchased on the platform.

Average daily active users (DAUs) jumped 26% to 97.8m, while hours engaged rose 30% to 21.7bn. Growth was strong in all regions, including the massive growth market of India (DAUs up 77%).

One issue with Roblox is that it remains unprofitable on a net income basis, which adds risk. It reported a quarterly net loss of $216m.

I think the company’s profitability should improve as it scales its advertising business over the next few years. But it remains pricey and high risk, in my opinion. I feel Scottish Mortgage is the safer long-term bet to consider.

The post £5,000 invested in Scottish Mortgage shares just 1 month ago is now worth… appeared first on The Twelfth Magpie.

Plus, I’ll no doubt be spending money in there soon, as she keeps asking for Robux (the firm’s virtual currency that allows players to buy in-game items and premium features).

My thinking here is that if I’m going to be forking out for Robux (along with millions of other parents), then I might as well own a small part of the company. That way, at least I can benefit in its success, assuming the stock does well.

Things I like

For those unfamiliar, Roblox is an immersive gaming platform loved by millions (mainly children). The firm doesn’t create the virtual worlds, but instead gives developers the tools to make their own. It then takes a 30% cut of each Robux spent on the platform.

In that respect, it’s a bit like YouTube, where users generate content. I do like asset-light platforms like this because they can be wildly profitable at scale (as Alphabet-owned YouTube is today).

Currently, Roblox doesn’t break out advertising revenue, but it already has shopping ads and virtual billboards. Many new movie releases are now being advertised on the platform. However, while advertising has immense long-term potential, it must be rolled out thoughtfully so as not to ruin the user experience.

Roblox has done a great job of growing its user base following the pandemic-fuelled gaming boom. In Q4 2022, it had 58.8m daily active users (DAUs). By Q4 2024, that had grown to 85.3m, representing 19% year-on-year growth and 45% more than two years earlier.

Somewhat confusingly, bookings (not revenue) tend to give a better picture of the money being spent on the platform. This metric, which is essentially a form of deferred revenue, has risen from $2.9bn to $4.4bn in two years.

The firm isn’t posting positive bottom-line numbers yet, but it does expect to generate between $800m and $860m in free cash flow this year.

Things that worry me

Over the long term, Roblox aims to have 1bn DAUs. Yet the vast majority of users are still children (over 32m are under 13 years old), and I don’t see that changing dramatically any time soon.

On a serious note, it worries me that Roblox has previously faced child grooming incidents on its platform. Despite investing heavily in safety measures, the risk sadly remains ever-present. It was partly why Turkey banned Roblox last year.

Another thing to note is that Roblox issues a massive amount of stock-based compensation ($1bn last year). While it’s not a cash expense, it still dilutes shareholders and remains a real cost.

Finally, the DAU figure in Q4 — the Christmas quarter — was down 4% from Q3. Is this a trend? Only time will tell, but it’s an amber flag for me.

My decision

Weighing things up, I’m still on the fence. So what I’m going to do is follow Roblox’s next couple of quarters to see if they impress me.

Who knows, I may yet be a shareholder by the time Christmas comes around and I’m putting Robux gift cards under the tree!

The post Is Roblox the best growth share to buy for my ISA in March? appeared first on The Twelfth Magpie.

One obvious way to get exposure to the metaverse, as an investor, is through buying shares in Meta Platforms, the company formerly known as Facebook. It’s currently spending around $10bn per year to build its metaverse. However, there are plenty of other stocks that offer exposure to this exciting growth story. Here’s a look at three I’d be happy to buy today.

Microsoft

One of my top stock picks for metaverse exposure is Big Tech giant Microsoft (NASDAQ: MSFT). As a major player in both video gaming and collaboration software, I expect it to be at the forefront of the metaverse revolution in the years ahead.

In terms of its plans for the metaverse, Microsoft CEO Satya Nadella has said that the group is currently creating an entirely new platform designed to bring people, places, and things together with the digital world. This will have applications in both the consumer space and the enterprise space. An important development here is its new Mesh product. This is a collaborative platform for virtual experiences that can be accessed from any device.

The risk here is that MSFT is likely to face plenty of competition from Meta Platforms in the years ahead. So, there’s no guarantee it will be a winner in the metaverse. I’m comfortable with this risk though, as Microsoft is a diversified company with exposure to a number of other high-growth industries.

Overall, I think it’s a great stock for me to own for the long term.

Nvidia

Another top metaverse stock, in my view, is Nvidia (NASDAQ: NVDA). It designs high-power computing chips that are used to power video gaming and artificial intelligence applications. Given the strength of its chips, I think Nvidia is likely to be a key ‘enabler’ of the metaverse.

Last year, Nvidia announced that it had developed its own metaverse-type platform, the ‘Omniverse’. This is an advanced technology platform that brings together the group’s expertise in AI simulation and graphics, and can be used to create virtual avatar characters, interpret speech, and create new 3D worlds. This platform appears to have a lot of potential.

Nvidia is an expensive stock that’s highly volatile. So, it’s not one for those seeking capital preservation. I’m willing to tolerate short-term share price swings, however. I think the long-term growth potential here is significant.

Roblox

Finally, I like Roblox (NYSE: RBLX) as a more speculative play on the metaverse. It’s a video gaming company with a platform that enables users to come together to play, learn, communicate, explore, and expand their friendships online. With over 50m daily users, you could say that Roblox has already created its own metaverse.

Roblox stock has underperformed recently, however, the company continues to grow at a rapid rate. Last year, for example, revenue increased 108% year on year to $1.9bn. Given the popularity of video gaming globally, I see plenty of growth ahead. This year, analysts expect revenue of around $2.9bn.

I’ll point out that Roblox is not a stock I’d load up on. The company isn’t yet profitable, so it’s a high-risk investment. I do see plenty of growth potential though. So, I’d be willing to take a small position here.

The post 3 metaverse stocks to buy today (that aren’t Meta Platforms) appeared first on The Twelfth Magpie.

I’ve been monitoring Roblox closely as I’m quite bullish on the video gaming market and it looks like it could be a major player in the metaverse. So has the recent share price fall provided an attractive entry point for me? Let’s take a look.

Why did Roblox stock fall?

Looking at the Q4 results, it’s not hard to see why Roblox stock tanked. For starters, both revenue and earnings missed Wall Street’s estimates.

For the quarter, revenue amounted to $770m, below the $772m analysts had been expecting. Meanwhile, the loss for the quarter of $0.25 was greater than the $0.13 loss expected.

Additionally, January 2022 bookings (equal to the amount of virtual currency purchased by users in a given period of time) were down significantly on recent monthly booking figures. For the month, bookings were between $220m and $223m, up just 2-3% year-on-year.

By contrast, in October, November and December, the company posted bookings growth of 15%, 23%, and 21% respectively.

This figure suggests the company is seeing a bit of a slowdown right now. That’s not so surprising though, given the world is reopening after the pandemic.

“Once stuck-inside kids and teens are now spending weekdays off their devices and out in the real world,” commented Jefferies’ analyst Andrew Uerkwitz.

The growth story is still in play

Stepping back a bit and looking at the bigger picture however, the growth story here appears to be intact.

For 2021, revenue increased 108% over fiscal year 2020 to $1.9bn, while bookings rose 45% year-on-year to $2.7bn. Net cash provided by operating activities jumped 26% to $659.1m.

And at the end of January, the company had daily active users (DAUs) of 54.7m, up 32% from January 2021.

“With nearly 55 million daily active users, Roblox is increasingly an integral part of people’s lives,” said CEO David Baszucki. “Our 2021 results demonstrate that the investments we were able to make in our technology and developer community are generating strong returns, and we will continue leaning into the business as we focus on the large, long-term growth opportunity ahead of us,” he added.

This is all quite encouraging, to my mind. However, it’s worth pointing out that Roblox is not expected to be profitable in the near term. For 2022, analysts expect the group to post a net loss of $365m. This adds risk to the investment case. Unprofitable company stocks can be highly volatile.

Valuation

As for the valuation, at the current share price Roblox has a market-cap of around $32.5bn. Given that analysts expect revenue of $3.31bn for 2022, that puts the price-to-sales ratio at just under 10.

That is high, which again adds risk. But I don’t think it’s outrageous, given Roblox’s huge user base and metaverse-related growth prospects. That valuation is not a deal-breaker for me.

My move now

Putting all this together, I see Roblox as a ‘speculative buy’ for me right now. But this is not a stock I’d load up on. However, given that the video gaming industry looks set for strong growth in the years ahead, I’d be comfortable taking a small position at the current share price.

The post Metaverse stock Roblox just crashed. Is this an amazing buying opportunity? appeared first on The Twelfth Magpie.

Powering the meta

Nvidia is a semiconductor superpower and is an established graphics processing unit (GPU) brand in the gaming world. It is now the leading metaverse hardware developer with an 83% market share. Investors finally caught up to the potential of the company and the share price rose 125% in 2021, making it one of the top global performers last year. But do I think this rise is justified? The answer is a resounding yes.

Given the expansion of virtual worlds, the computing and graphic capabilities of the average computer or console has grown rapidly in the last decade. This demand caused Nvidia’s revenue to jump over 100% in just three years. Its premium chipsets have grown in both capacity and price. And the firm is making the transition to offering a software framework via the Nvidia Omniverse. The platform will allow creators to seamlessly implement graphic upgrades to existing virtual worlds.

But I think replicating this run in 2022 is very unlikely. At $276, the Nvidia share price is now trading with a mindboggling price-to-earnings ratio of 85 times. Analyst’s estimates suggest an 18%-20% growth in revenue this year, which is far from its 2021 revenue growth of 52%. Also, given the expenditure that comes with expansion, investors are taking profits right now and its share price has been falling since mid-December.

But I am not looking for explosive gains but the best stock to invest in the metaverse. And despite the huge overvaluation, I think Nvidia will continue its market reign as a computing powerhouse and could offer steady growth. Although I missed its incredible run last year, Nvidia still remains the top metaverse stock for my portfolio in 2022.

Meta gaming

I cannot overlook Roblox and its role in shaping the early days of the metaverse. After its listing in July 2021 at $45, the Roblox share price shot up to $135 in November. But it has fallen steadily since and is currently trading at $88. And I think Roblox’s value was grossly inflated given the pandemic gaming boom. 

Roblox’s surge in daily users last year means the platform now has over 50m unique games and is child-friendly. Both strong positives. But can it front the gaming revolution on the metaverse? I do not think so. The gaming world is so fragmented and full of diverse sects. I think there is so much scope for expansion and Roblox is just one piece of the puzzle.

It does not help that Roblox is still loss-making. Losses in 2021 stood at $348m and it could be years before the gaming company starts making money. It is too early to call how metaverse gaming will develop. The hardware, however, is a different question. Processors are crucial to creating this virtual world. This is why I think Nvidia is the top metaverse stock for me to buy today.

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What Roblox does

Roblox is an online gaming platform. Importantly, it also allows users to create games using Roblox’s proprietary system. In fact, it has over 50m different games that can be played right now. 

The company started out in 2006, but really saw growth accelerating during the pandemic. This is logical, given the lockdowns and time we all had to spend at home. Roblox is child-friendly which is another reason for the large growth, as the social aspect of gaming together has picked up. 

After strong growth during 2020, it went public in early 2021. Roblox shares were set at $45, and rallied in the initial aftermath. They currently trade at $124, meaning that I’d have almost tripled my investment within a year.

A brave new world

The vision for buying Roblox shares now is less to do with its finances and profit/loss and more about the trend towards the metaverse. I’ll hold my hands up and say that I’m by no means an expert on the subject. However, it’s clear that many smart people are investing a lot of time and money in this sector.

For example, Facebook has completely rebranded to Meta pivot to virtual reality, with CEO Mark Zuckerberg being a huge advocate. Another case is Nike. Only last week it was announced that Nike has created Nikeland within Roblox, allowing players to kit out their avatars in Nike products.

The very nature of Roblox is that it’s a virtual world, in which anyone can create anything (within reason). The ability for players to create different games within the system naturally helps the company to get bigger. If we continue to see large brands get involved in this space then it should benefit Roblox shares. Higher user participation, larger spends and greater publicity are all positives here.

Risks to be aware of 

I see a couple of risks in this area though. Firstly, Roblox is losing money. In fact, the latest Q3 results show that in the nine months through to the end of September, it lost more than in the same period last year. This was a loss of $348m in comparison to the 2020 figure of $194m.

Secondly, could the whole metaverse play simply be a fad? If it is, then investors could quickly move on to the next big thing, leaving me holding shares in Roblox at a loss.

But I’m still strongly considering buying shares in Roblox as a play on the metaverse growth in years to come. 

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