Online gaming platform Roblox (RBLX) has made quite the name for itself in recent months. However, the latest developments, as revealed at its annual developers’ conference, have not left investors so eager. Roblox shares are down fractionally in the closing minutes of Friday’s trading session. Revealed during the event was a new plan to allow those who build their own worlds on the platform to charge actual cash money for access instead of Roblox’s own currency, the Robux.
The change is limited to those games that require payment to play, also known as Paid Access games. With this change, developers will be able to make money offering up their worlds, and can modify their prices accordingly to reflect interest from the market, all without having to deal with the vagaries of an artificial currency.
Meanwhile, Roblox users will be able to pay directly, and Roblox will assess its fees on a sliding scale. Those who charge $10 for their world will pay 50% to Roblox, $30 will assess 40% fees, and $50 will see 30% fees charged.
A Branded World Just for Brands
In a move to boost advertising, Roblox is also planning to bring out The Brands Experience. This is a specifically-branded world geared toward getting brands interested in setting up their own world on the Roblox platform.
The Brands Experience will offer case studies on how other brands have put the platform to work, ranging from Walmart (WMT) to Paris Hilton’s media brand 11:11 Media. It will also show off the various advertising units available to buyers and act as a way for marketers to see just what it is they will be buying into. Since marketers in the past expressed an interest in a “walk-through” from representatives, Roblox ultimately did just that: it created a world that served as a walk-through and a sales pitch all at once.
Is It Good to Buy Roblox Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RBLX stock based on 13 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 51.37% rally in its share price over the past year, the average RBLX price target of $46.06 per share implies 5.67% upside potential.
