Rivian, an electric vehicle start-up, and Roblox (RBLX), a metaverse gaming firm, are high-growth bets.
Neither stock is safe if looked at from a valuation perspective. Investors seeking safety would buy Tesla
(TSLA), a leading EV firm over Rivian.
Gaming firms Activision (ATVI), which Microsoft (MSFT) hopes to buy, and Electronic Arts (EA), are
cheaper. Roblox’s game base is mostly a young audience. Parents might cut off funding for their
children, due to the recession. Roblox might trade in a narrow range for the next few months. Investors
will weigh its growth prospects against higher operating costs.
Both sectors are sensitive to the economy. The EV market sells premium-priced goods. Despite a strong
salary, consumers have less disposable income on hand as inflation continues. Cautious investors will
need to check that Rivian is not losing bookings.
The gaming industry needs a sustained active user growth rate. People stretched for income might cut
back on gaming. They might prefer to spend less time gaming on a mobile device. Look for streaming
content viewership growing as a negative sign. The more time people spend watching content, the less
likely they are to play Roblox games.
Neither stock is safe at this time. Watch both stocks.
