July 1, 2022


What occurred

This would be acquiring monotonous if it weren’t so thrilling. On Friday, for the seventh straight investing working day in a row, shares of on line gaming system Roblox Company (NYSE: RBLX) churned at the time again higher, notching a 6.6% achieve as of 3:15 p.m. ET.

The explanation, in a word: Nikeland.

Nikeland avatars on display.

Nikeland avatars on show (and presumably for sale). Graphic resource: Nike.

So what

Never read of Nikeland, you say? There is a purpose for that. As Nike (NYSE: NKE) announced in its push launch yesterday, Nikeland is an totally “bespoke world” on the Roblox gaming system and “a new place on Roblox for Nike followers to connect, make, share activities and compete.”

It is a place on Roblox where followers of the sportswear model can obtain to “participate in game titles these types of as tag, the floor is lava, and dodgeball with their friends” — or “design their very own mini-video games from interactive sports activities resources.”

Now what

Additional importantly to investors, Nikeland is presumably a new income stream for Roblox. Though neither Nike nor Roblox divulged the financial specifics on their new marriage, you have bought to figure that there is some serious promotion investing heading on right here, with Roblox getting the beneficiary. And if Nike is advertising Nike virtual items within Nikeland (as would seem rational), then you can expect Roblox will be getting a reduce of that, way too.

Is this the foreseeable future for Roblox? Is it a foreshadowing of what buyers can be expecting to happen as corporations like Roblox, Microsoft, and Facebook — er, I suggest Meta Platforms — make out the principle of a “metaverse” in which consumers devote more money than at any time on line?

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Indeed. I suspect it is that, much too — and which is most likely superior news for Roblox stock.

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Rich Smith owns shares of Roblox Corporation. The Motley Idiot owns shares of and suggests Nike and Roblox Company. The Motley Fool has a disclosure policy.

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