Unit revenues are dropping in the wrong direction. The company’s key performance metrics are going the wrong way. And average bookings per user fell 9% in November, 10% in December, and 22% in January. Average hours played per day by those users has been falling at a 2- to 5% pace every month over the past few months. Long story short, Roblox’s user growth has decelerated from 35% in November to 33% in December to 32% in January. The pandemic is over, and kids are spending more time on the real-world playground. However, Roblox reported quarterly numbers last week. Long-term, Roblox stock has tremendous potential.

The company is cementing itself as an early leader in pioneering and defining the metaverse through partnerships, virtual concerts, and more.īy 2030, we believe over 250 million people will be interacting on Roblox daily, using virtual avatars to play games, attend concerts, and go shopping. It’s a holding in our flagship Innovation Investor portfolio. To be clear, we are very bullish on Roblox stock in the long run. And one we’re concerned about is Roblox stock. Long-term, metaverse stocks will be just fine.īut in the near term, some metaverse stocks may struggle. And within ten years, every company will be using metaverse technology to create virtual offices and factories. Within five years, we’ll all be attending virtual concerts and going to virtual bars. Within the next two years, we’re all going to be buying virtual reality (VR) headsets. The trend of humans going from 2D to 3D internet applications and platforms remains very much alive and well. Did the metaverse die before it even got started? This vicious price action in metaverse stocks over the past few months warrants an honest question. Roblox stock is off 60%, thanks to a big slowdown in its business in early 2022. Unity stock is off 49% - even though it shared a great quarterly. Meta stock has shed 45% after the company reported miserable fourth-quarter numbers. Since then, all four of those stocks have been crushed. How things have changed in such a short time… Facebook changed its name to Meta (NASDAQ: FB), metaverse gaming giant Roblox (NYSE: RBLX) reported record-breaking holiday numbers, 3D imaging company Matterport (NASDAQ: MTTR) was the best-performing small-cap growth stock, and metaverse gaming engine Unity Software (NYSE: U) was flying high on strong operational results. That was just a few months ago, in late 2021.

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