Without a question, video game stocks have done exceptionally well throughout the pandemic. The recent $70 billion all-cash purchase of gaming business Activision Blizzard (ATVI) by Microsoft (MSFT) demonstrates how the major techies are increasing their footprint in the expanding gaming market.
Going with the trend of the market, early this morning, Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, had another unusual bit of advice for Apple (AAPL) CEO Tim Cook. He expressed interest in the shares of video game maker Roblox (RBLX) and advised Tim Cook to invest in it.
Gerber’s tweet stated it clearly, “LISTEN TO ME NOW. BID FOR ROBLOX NOW.”
Gerber has previously recommended that Cook invest in Netflix (NFLX) and Tesla (TSLA). Of course, not every piece of advice should be taken into account. Nevertheless, both stocks have fared admirably, and investors are delighted with their results.
Roblox is a video game platform that went public in March 2021 and witnessed strong growth. The high success in stock price was driven by the spike in user base during the pandemic, as well as the continuous optimism about the metaverse. However, the recent drop in its user base has resulted in a share decline lately.
Tim Cook’s reaction to Roblox bidding would be intriguing to witness. Berger’s suggestion isn’t a bad one, considering Roblox’s excellent long-term development prospects, which are fueled by the booming metaverse market. While Roblox’s outsized stock price gain during the pandemic may not be replicated, it may still expand at a rapid pace, as long as it continues to thrill its fans and investors.
TipRanks’ Stock Investors tool clearly reveals that investors holding portfolios on TipRanks are buying the dip in Roblox stock. The data shows that about 16.4% of these investors have increased their stake in RBLX stock in the past month.
Download the TipRanks mobile app now.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
