Followers | 680 |
Posts | 141062 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Monday, September 12, 2022 9:23:15 AM
By: TheStreet | September 12, 2022
• Roblox is looking to let advertisers on its platform to boost revenue. Analysts are unconvinced that advertising in the metaverse will be a money maker.
With a user base of more than 52 million, Roblox (RBLX) is among the top entertainment and gaming platforms out there. Anyone with kids and an internet connection knows the power of ‘Robux’ in getting their tweens and teens to clean up their room or do their homework.
Yet like many other online platforms, the struggle to continue making money is real. Which is why Robox is planning on allowing advertisers to pay for the privilege of showcasing their brands in the virtual-reality worlds Roblox has become known for.
As part of its annual developer conference last Friday, Roblox said it plans to debut ads next year. Prior to the rollout, Roblox said it will be testing ads with unspecified developers and brands by the end of this year.
It is a move that other online platforms and services including the likes of Twitter (TWTR) , Snap (SNAP) , which owns Snapchat, ByteDance-owned TikTok and others have been increasingly engaging with amid post-pandemic plateaus in user growth and increasing expectations to make more money.
Roblox Revenue Growth Has Slowed
Robox essentially works like a virtual Lego world, where users can build virtual worlds, either on their own or with others, in pretty much any creative way they can imagine. Roblox makes money by selling Robux, which allows users to buy virtual building tools with real cash.
What has been absent in Roblox’s user-created worlds has been brands paying to build their own virtual worlds that entice other users to hop in. Imagine Starbucks (SBUX) , for example, having a virtual world of coffee shops and coffees, or American Eagle having virtual clothing stores.
Roblox describes its upcoming ad offering as immersive ads, though there’s not yet a standard format for how they will appear, though Roblox and others have speculated that ads in the metaverse could resemble digital goods like shoes and clothing that people could buy and wear – virtually of course.
Roblox has tried out some online ads with brands like Warner Bros. and shoe and clothing maker Vans. The ads were displayed in an experimental ad format that Roblox referred to as “portals.”
In the portal ad tests, when users interact with the brand, they can be automatically transported to the company’s virtual Roblox community, according to Roblox. At this stage, companies are just trying to understand how ads can function in Roblox and other metaverses.
Virtual Fight for Market Share -- and Survival
Roblox is jumping into online ads during a period of turbulence in the market. Meta’s (META) Facebook business and Snap have been particularly hurt by Apple’s privacy changes in iOS, which make targeting more difficult.
Meanwhile, Amazon (AMZN) and Apple (AAPL) are bolstering their ad businesses, as companies that rely on those platforms are spending more money to get in front of consumers.
All of that has impacted Roblox's bottom line -- and in turn its stock price.
Roblox debuted on the New York Stock Exchange in March 2021 and saw its market cap surge past $80 billion in November as investors poured into high-growth tech stocks. But this year’s economic slowdown has punished those businesses, including Roblox, which has shed 60% of its value this year.
In August, Roblox reported second-quarter financials that missed on both the top and bottom lines, and revenue growth slowed to 30% from more than 100% a year earlier. The company said in its quarterly filing that it generates “substantially all” of its revenue from the sale of Robux.
To be sure, analysts remain skeptical of Roblox’s prospects. Cowen analyst Doug Creutz on Monday initiated coverage on Roblox with an underperform rating and a one-year price target of $31. In premarket trading on Monday, shares of Roblox were down 1.6% at $44.80.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent RBLX News
- Roblox Expands Immersive Video Ads Access to All Advertisers, Adds New Measurement Partners • Business Wire • 05/01/2024 01:00:00 PM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Roblox Taps PubMatic to Offer Programmatic Immersive Video Ads on Its Platform • GlobeNewswire Inc. • 04/10/2024 01:05:33 PM
- Roblox to Report First Quarter 2024 Financial Results on May 9, 2024 • Business Wire • 04/08/2024 03:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/08/2024 09:27:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 11:24:51 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 11:23:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 11:21:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 11:20:22 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 10:20:03 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 09:10:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 01:16:13 AM
- Crypto: Phishing Hack Strikes MicroStrategy, Malicious Code Compromises Tornado Cash, and More • IH Market News • 02/26/2024 06:57:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:46:41 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:45:25 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:44:06 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:43:01 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:41:29 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:40:37 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:39:59 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/22/2024 09:20:23 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 11:34:54 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 11:31:15 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 11:25:12 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 11:24:09 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM