METAVERSE GAMES
Thanks to this momentum, Roblex entered NASDAQ in March last year, surprising industry officials with a market capitalization of $38.3 billion (47.13 trillion won) on the same day.
As of October last year, DAU surpassed 48 million, showing steady growth.
Interestingly, the ratings of the two game companies have changed 180 degrees since Warren Buffett and Jim Simmons bought the shares.
Let’s take a look at the blocks first.
MINECRAFT vs ROBLOX
On February 16, Roblex announced that sales in the fourth quarter of 2021 reached $ 568 million (697.7 billion won), less than the market estimate of $ 640 million (742.9 billion won).
The reason was that the usage time of Lowlocks was 10.8 billion hours, down 3.6% from the previous quarter (11.2 billion hours). 로블록스 추천게임
The industry interprets that the interest of users in Roblex has decreased that much. For this reason, the stock price on the day of the announcement also fell 26.5% from the previous day to 53.87 dollars.
Roblox and Blizzard
Listen to Lee Won-joo, an analyst at Kiwoom Securities. “Since Roblox is a service launched in the U.S., statistics related to U.S. users are used as a leading indicator.
Therefore, investors are sensitive to U.S. indicators. In this regard, the decline in the usage time of U.S. Roblox for the first time is likely to be a negative factor for stock prices because there is a timeline in investors’ heads that the growth of Roblox will soon slow down in other countries.”
Some point out that Roblox’s stock price was overly overvalued. “Its market capitalization has been overvalued compared to operating profit,” said Lee Young-jin, an analyst at Samsung Securities Co.
“To justify high stock prices, we need to give the market a feeling that the company seems to be growing indefinitely, but Roblox’s performance in the fourth quarter of last year was not the case.”.
However, the growth rate of Loblocks service is not low. There is still plenty of room for business expansion.
As a result, CEO David Basutsky Loblocks stressed, “Robox has not even started its advertising business yet,” and stressed, “There are many opportunities to generate profits.”.
“Roblox is currently producing only teenager-oriented content,” said Lee Won-joo, an analyst. “If we distribute adult-related content in the future, it will be able to catch current consumers who will be in their 20s and create a virtuous circle in which new teenage consumers continue to flow in.”. Now let’s take a look at Blizzard.
Blizzard’s stock price has been skyrocketing since Warren Buffett invested. On January 18, Microsoft (MS) announced that it would acquire and merge Blizzard.
The cost of this alone is $ 68.7 billion (84.6246 trillion won), the highest amount in the IT industry’s M&A history. Blizzard’s stock price, which was 65.39 dollars (January 14) immediately after the announcement, jumped to 82.31 dollars (January 18) and continues to be 80.55 dollars (March 7).
Warren Buffett, who bought a large number of Blizzard shares just before M&A of the two companies, is also drawing attention. Industry sources say he may have made at least $200 million (246.3 billion won) in capital gains. So Jim Simmons was wrong, and Warren Buffett was right? It’s too early to conclude. Let’s go back to Blizzard.
As Blizzard is incorporated into the world’s leading company MS, investors are optimistic that Blizzard’s stock price may recover to the $90 range.
However, experts warn that “no hasty judgment should be made.”. This is because there is a possibility that M&A will fail.
MS’s Blizzard acquisition is expected to be completed in the second half of next year, and in order to complete it successfully, it must first pass the U.S. Federal Trade Commission (FTC)’s regulations on antitrust laws.
ROBLOX : The center of Metaverse
The antitrust law prohibits certain companies from monopolizing the market through unfair practices such as M&A or price fixing, preventing them from infringing on consumer interests. Since MS, which is doing well in the video game market with the XBOX series, a game console, and Blizzard, which has an old hand in the game industry, have met, it is highly likely that the antitrust law will be reviewed closely.
Some point out that Blizzard’s stock price is currently “big.”. “With the M&A, Blizzard’s stock price has risen because the stock price may have followed Blizzard’s acquisition price ($95 per share) rather than reflecting expectations for synergy between the two companies,” an industry source said on condition of anonymity.
“The negative issues surrounding Blizzard still remain.”. “Considering that most game stocks are on the decline, this is an exceptional case,” said Cho Yong-min, an analyst at Shinhan Financial Investment. “Blizzard’s stock prices are expected to be greatly affected by the success of M & A.”. Blizzard’s increased ransom is not due to its growth potential or remarkable performance.
As such, emerging forces that have recently been in the spotlight in the stock market are facing both crises and opportunities.
At the same time, ROBLOX is said to have entered a stagnant period, and the potential to make a “second leap”through business expansion is also drawing attention.
Blizzard is seeing the halo effect of MS, but there are a lot of negative events to solve. In other words, it is necessary to comprehensively review both sides of these companies. I
n addition, we need to look closely at the objective indicators of companies. As the case of Roblox shows, the evaluation of emerging forces varies noticeably with changes in indicators. In this regard, analyst Cho Yong-min said as follows.
“There is a risk of evaluating the value of these companies based on whether they are in the midst of developing technologies such as Metabus or NFT.
The commercialization of these technologies is still a distant future.
Rather, it is better to check user-related indicators such as DAU, usage time, and the number of subscribers.
Even if you have the desired technology, the targets of these businesses will be humans. “