July 1, 2022


What happened

This would be acquiring uninteresting if it weren’t so enjoyable. On Friday, for the seventh straight investing day in a row, shares of on-line gaming platform Roblox Company (NYSE:RBLX) churned after again better, notching a 6.6% get as of 3:15 p.m. ET.

The cause, in a phrase: Nikeland.

Nikeland avatars on display.

Nikeland avatars on exhibit (and presumably for sale). Graphic supply: Nike.

So what

Under no circumstances read of Nikeland, you say? There is a rationale for that. As Nike (NYSE:NKE) declared in its push launch yesterday, Nikeland is an solely “bespoke world” on the Roblox gaming system and “a new put on Roblox for Nike enthusiasts to join, develop, share activities and compete.”  

It’s a position on Roblox wherever enthusiasts of the sportswear brand can acquire to “participate in online games this kind of as tag, the flooring is lava, and dodgeball with their friends” — or “design their very own mini-online games from interactive sports activities components.”

Now what

Extra importantly to buyers, Nikeland is presumably a new income stream for Roblox. Although neither Nike nor Roblox divulged the economical particulars on their new relationship, you have acquired to determine that there’s some critical promoting shelling out heading on in this article, with Roblox staying the beneficiary. And if Nike is selling Nike digital merchandise within just Nikeland (as seems sensible), then you can hope Roblox will be getting a slash of that, too.  

Is this the potential for Roblox? Is it a foreshadowing of what traders can hope to take place as businesses like Roblox, Microsoft, and Facebook — er, I indicate Meta Platforms — develop out the concept of a “metaverse” in which customers spend a lot more cash than ever on the internet?

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Sure. I suspect it is that, as well — and which is likely great information for Roblox inventory.

This write-up signifies the impression of the author, who may perhaps disagree with the “official” recommendation placement of a Motley Fool premium advisory company. We’re motley! Questioning an investing thesis — even 1 of our own — can help us all imagine critically about investing and make choices that aid us come to be smarter, happier, and richer.