By Sam Boughedda
Investing.com — Shares of Roblox Corp (NYSE:RBLX) rose around 2% at the open Monday on the back of comments from BofA analyst Omar Dessouky, who described the company as a "category leader."
Roblox is an online game platform and a game creation system considered a leader in the metaverse media sector.
Dessouky reinstated a buy rating on the stock with an $84 price target, saying “Roblox is the category leader and is concretely demonstrating for consumers, developers, and merchants what the term means."
The analyst noted that while other online media companies sponsor their own metaverses, Roblox has no “old media” businesses to cannibalize, and it invests 100% of its resources towards leadership on eight well-defined metaverse criteria.
Dessouky added that the metaverse category could eventually subsume parts of social media, streaming video and video games, and revenue streams from advertising and e-commerce.
"Roblox could eventually encompass more than today’s investors can conceive,” he stated, concluding that it is "comparable to the early years of now dominant platforms."