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JPMorgan initiates coverage of Roblox at overweight rating, says video game stock can rally nearly 20%

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David Baszucki, founder and CEO of Roblox, presents at the Roblox Developer Conference on August 10, 2019 in Burlingame, California.
Ian Tuttle | Getty Images

Video game platform Roblox offers investors a healthy gaming business and an attractive foothold in the potential of the so-called metaverse, JPMorgan said in a note to clients.

Roblox is a company whose main product is video games for children, but the interactive nature of the games and extended playing time makes it a place for kids to socialize virtually. Analyst Alexia Quadrani initiated coverage of the newly public stock on Tuesday with an overweight rating, saying the market was underestimating the short- and long-term potential of the platform.

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