Will Roblox Reach Its Prime Again

If this isn’t one of the top performers affected by the pandemic, we don’t know what is.


Roblox Corporation (Figure 1) is a technology company, revolutionizing the gaming industry. It operates a human co-experience platform or in other words, Roblox Platform, where users get to e-interact in order to explore and develop, user-generated and 3D experiences.


Roblox Platform offers live services that allow users to socialize and play with others in an open world free of charge. Its platform is powered by user-generated content that draws inspiration from gaming, entertainment, social media, and even toys.


Figure 1: Source Roblox


Signing up is free of charge as mentioned, you get to personalize your avatar as per your preferences. After that, you get to upgrade your avatar’s performance or even buy equipment and design them as you wish.


The smart thing about it is that in order to get upgrades or to purchase different stuff and do enhancements, you need to buy them, however, not with any kind of currency. You will have to do an exchange transaction from any currency to Robux virtual currency.


Another interesting feature is that it is also considered to be a Hub for developers, whereby any developer can create his own game using Roblox’s studio of software tools.


This is all interesting news, however, is it currently undervalued? Let’s take a look at (Figure 2) the charts and see.



Figure 2 : Source TradigView Roblox Corporation


During the pandemic, Roblox witnessed an astonishing demand given the fact that it can easily mimic real-life through avatars and open-world characteristics. On the 22nd of November of 2021, Roblox’s stock price reached an all-time high exceeding $141/share.


However, after the vaccinations started and countries started decreasing easing on Covid restrictions, the price witnessed a decrease in demand, whereby prices reached as low as $35/share.


This decrease can be easily seen in the above figure, whereby currently the price is forming a wedge pattern, while the downward trend was also broken and a retest is currently in the making.


From another side, we also witness divergence between the price and RSI and MACD, which signals a possible bullish momentum.


So will this be the start of the recovery phase for Roblox?


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