The American retail giant Walmart (WMT.US) informed investors yesterday about an agreement with Roblox (RBLX.US) and the opening of two immersive experiences in the virtual “metaverse” space. Shares in both companies gain ahead of the opening:
- Walmart said the decision to join the metaverse is driven by trends among the company’s younger generations of customers, highlighting the role of the pandemic, which has driven a continued trend in sales in the virtual space;
- The company wants to make Generation Z (born after 2010) aware of virtual reality and believes that by becoming more familiar with the product in the future, consumers will reciprocate by preferring the shopping network “tuned early”;
- The open world of “Walmart Land” will be supported by the actor Noah Schnapp, recognizable in the popular Netflix series “Stranger Things”. The world will feature virtual music festivals featuring popular artists and virtual merchandise, mirroring products available in real WalMart stores and advertised by popular influencers. The second world “Universe of Play” will provide a platform for young players, with characters and heroes from WalMart’s best “holiday” and entertainment products;
- Roblox was chosen because of the “record time” players have spent on the platform. Roblox created the game of the same name in 2004, and despite its outdated graphics, it still attracts millions of players. Roblox characters can so far be dreamed up by Meta Platforms or Epic Games. The platform receives an average of more than 40 million players per day. By comparison, Horizon Worlds (Meta Platforms) attracts numbers hovering around 300,000 players per day on average;
- Roblox’s 2021 IPO valued the company at nearly $45 billion, with the stock down more than 60% year-to-date, largely due to the losing advertising sector.
The plot Walmart (WMT.US) intervened W1. The stock had been in a steady sideways trend for many years, from which it started to rise in 2012. The title lost between 25 and 40% (2002, 2007, 2014, 2017, 2021, 2019). The biggest selloff was in 2014-2015, when the stock fell from $88 to nearly $57 per share. share, which coincided with the so-called “death cross”, i.e. 50 days. Typically, this type of intersection often heralds weakened sentiment and occurs near a low price. Currently, looking at the averages, we can assume that if the price trend continues, there will be an intersection of the averages, which would indicate further downside margin, however, sentiment around WalMart stock may still improve. Starting today, the company, which is one of the largest retailers in the United States, is about 20% off record prices. However, the company’s financial results for the third quarter, which it presents on November 15, will probably be the most important for the continuation of the price movement. It is still unclear whether high inflation in the US will seriously affect a significant drop in the chain’s sales and earnings. Source: xStation5
“This material is marketing communication in accordance with Article 24(3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011 /61/EU (MiFID II) Marketing communication is not an investment recommendation or information that recommends or suggests an investment strategy in accordance with Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (the Market Abuse Regulation) and repealing European Parliament and Council Directive 2003/6/EC and Directives 2003/124/EC, 2003/125/EC and 2004/72/EC from the Commission and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 on supplementing Regulation (EU) No. 596/2014 of the European Parliament and of the Council with regard to standards regulatory techniques regarding the technical conditions for the objective presentation of r. investment recommendations or other information that recommends or proposes an investment strategy and for the disclosure of special interests or indications of conflicts of interest or any other advice, including in the field of investment advice, according to the law of 29. July 2005 on trading in financial instruments. (ie Journal of Laws 2019, Item 875, as amended). All information, analysis and training provided is provided for informational purposes only and should not be construed as advice, a recommendation, an investment solicitation or an invitation to buy or sell financial products. XTB cannot be held responsible for its use and the resulting consequences, as the end investor remains the sole decision-maker regarding the position of his XTB trading account. Any use of the said information and in this connection any decision made in connection with any purchase or sale of CFDs is the sole responsibility of the end investor. Reproduction or distribution of all or part of this information for commercial or private purposes is strictly prohibited. Past results are not necessarily indicative of future results and anyone acting on this information does so entirely at their own risk. CFDs are complex instruments and have a high risk of quickly losing capital due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You need to make sure you understand how CFDs work and can afford to take the likely risk of losing your money. With the limited risk account, the risk of loss is limited to the invested capital.