Walmart enters the Metaverse with Roblox πŸ›’

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 Roblox created the game of the same name in 2004, and despite its outdated graphics, it still attracts millions of players.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

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