A number of technologies are being developed, even with the economy teetering on the edge of a recession. Some that are under way already will likely develop a lead over competitors, who may have a tough time getting under way thanks to rising interest rates and a pullback in tech trends.
One of the biggest tech trends last year was the metaverse. A number of companies talked about developing the concept.
With the slowdown underway, companies that are already capable of generating revenue in the metaverse are likely to benefit from this trend.
One leader in the space is Roblox (RBLX). The metaverse site is already bringing in cash, even as bigger tech names are still developing out their own metaverse projects.
The company reported recent earnings, but noted that the strong US dollar may weigh on profitability this year. Yet investors don’t seem to mind, as currency fluctuations are unlikely to weigh on shares in the long term.
Action to take: Shares are down nearly 70 percent in the past year. For many tech companies in a bear market, such a move is recoverable in time. That makes shares likely to be a strong performer for long-term buyers now.
For traders, the October $40 calls, last going for about $3.25, could see further gains in the coming months, likely in the mid-double-digit range. Traders may want to buy a small stake now, and add to it on any further short-term weakness in the markets.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.