Online gaming platform Roblox is a stock that I will be monitoring very closely in the coming weeks. For those not familiar with Roblox, symbol $RBLX, it is an online universe that allows players to create or play games with other users. In our increasingly online world, Roblox has become a leader in the virtual gaming space. Talk to any ten year old, and they will tell you all you need to know about Roblox's increasing online presence. While Roblox was not profitable in 2020, it is estimated to bring in strong earnings in both 2021 and 2022. In addition, it has produced incredible sales over the last year, with the last four quarters showing accelerating sales growth. Its' most recent quarter saw sales increase by triple digits, something not too many companies can achieve.
This recent IPO has held up incredibly well since its' first day of trading. RBLX's chart is showing lots of accumulation with very little distribution coming in. That's usually an excellent sign that demand is increasing while supply remains limited. This is often a recipe for large percentage moves higher. I currently own RBLX with a stop loss in place to mitigate my risk.
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Full Disclosure: I currently own Roblox.
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