There is a lot of unknown regarding the metaverse, and that might be cause for pause for some investors on the sidelines. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on May 11, Motley Fool contributor Toby Bordelon discusses why investors should diversify if they want to invest in the metaverse.
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Toby Bordelon: It is a metaverse play. Is it a good one? I don't know. Be serious about that. If you are a believer in the metaverse, if you think, yeah, this is the metaverse. Metaverse is going to be big, I want to be invested in that. Yes, I think Roblox (RBLX 2.95%) is a decent way to play it. Let's be honest, valuation has come down a lot. It's a lot more attractive than it used to be. You got to consider that. But, I would not say I'm a big believer in the metaverse. I'm going to buy Roblox and I'm done, right? I would not approach it that way because I think there's too much unknown about what that's going to look like. I think you can make it part of a basket. I would say a five-company basket minimum if you want to play the metaverse and, sure, Roblox will be a part of that. But just because of what I see with revenue slowing, with bookings slowing, and whether or not they can monetize, they can increase monetization and because there's so much unknown about what does the metaverse actually look like, how do people actually use it? How do you actually monetize it? Don't put your eggs in one basket. Make it a diversified play.