Roblox has potential to become master of the metaverse

Roblox has potential to become master of the metaverse The metaverse is a virtual world that allows people to participate directly in online experiences. Roblox (NYSE: RBLX) has established itself as an early leader in the metaverse space, with the potential to become one of the biggest players in entertainment and social media. Roblox is a platform housing a range of individual games and social opportunities, and it adds content regularly. Participants earn in-game currency that can be exchanged for real-world money based on user interactions with their creations. First launched in 2006, Roblox has increased engagement and monetization. The average number of active users on the platform daily rose 22% year over year in the first quarter, reaching 66 million, while revenue climbed 22% year over year, to $655 million. Roblox is likely years away from profitability, as it’s still spending a lot of money in order to grow. It does have a strong balance sheet, though, having ended the first quarter with roughly $2.1 billion in cash, cash equivalents and investments net of debt. It looks like a buy-and-hold stock for long-term, growth-focused investors to consider. (The Motley Fool owns shares of and has recommended Roblox.)