Shares in gaming platform Roblox have risen by 56% in value since 9 November when it reported strong demand and outlined a road map to grow its platform to 1 billion users.

Roblox has become a meme stock related to the huge demand for everything related to the metaverse – a virtual world that allows people to exist in an alternative 3D reality.

The parent company of social media giant Facebook recently changed its name to Meta Platforms while gaming microchip manufacturer Nvidia launched its Omniverse platform to serve the development of virtual platforms.

Following Roblox’s investor day, investment bank Morgan Stanley raised its price target on the stock from $88 to $150 based on the firm’s ‘early metaverse leadership’.

Roblox believes all leading brands will need a ‘Roblox strategy’ within the next three to five years.

Last week athletic footwear and apparel brand Nike became the latest brand to join the Roblox platform after creating a virtual playground called Nikeland which allows players to compete in mini games including dodgeball and tag.

Roblox also plans to expand its appeal towards older age groups and beyond gaming. For example, it recently launched listening parties where artists can premiere a new album.

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