Why Nike Is a Better Metaverse Stock Than Roblox

Roblox (NYSE: RBLX) has been the metaverse darling of Wall Street since its direct listing earlier this year. The gaming platform provider is posting impressive growth numbers, with 47 million daily active users during the third quarter. The problem for investors is that the stock has been quite volatile and trades at a high valuation of 33 times sales, which presents considerable downside risk if future quarterly reports don't live up to investor expectations.

The good news is that there are other ways to invest in the metaverse. For example, Morgan Stanley estimated the revenue opportunity for luxury brands selling virtual goods on metaverse platforms could reach $56 billion by 2030, but this opportunity could apply to non-luxury brands as well. Here's why Nike (NYSE: NKE) is well-positioned to tackle the metaverse.

Nikeland on Roblox. Image source: Nike.

Source Fool.com