Right after the release of its earnings on Nov. 7, $Roblox(RBLX.US)$ (NASDAQ:RBLX) stock jumped 40%. It hasn't stopped since.

RBLX stock has moved even higher in recent days, breaking past a strong resistance level at $90 and topping the $140 mark. and even though it pulled back slightly, Roblox is on the move higher again. I believe that it could be starting an uptrend.

The jump in the stock's price was caused by the massive earnings surprise. But there is plenty to like for the long-term investor. Excitement is building up for the metaverse concept and large companies are signaling their interest in the concept.

Roblox has a head start in this space as it has already built out its platform.

Metaverse as the Future of the Internet

The concept of a Metaverse has gotten a lot more attention in recent weeks with Meta Platforms' (NASDAQ:FB) announcement it was changing its name from Facebook. In the announcement, founder Mark Zuckerberg laid out his vision of what a metaverse would look like in the next decade or so. He mentioned the metaverse as the next iteration of the web, but what does that mean exactly?

The term was coined in 1992 by author Neal Stephenson where he envisioned a world of avatars who met in virtual reality environments. The movie The Matrix really brought the concept of a digital virtual world fully into the mainstream in 1999.

The beginnings of such technology to bring about this kind of hyper-real alternative world are already being developed. Companies are betting big on augmented reality, virtual reality, 3D holographic avatars and other tech.

Roblox Is a Cornerstone of the Metaverse

At its core though, a metaverse is just a virtual environment. In this environment, users stay connected with friends, work and play. They can also undertake joint experiences like taking virtual trips or watching concerts. The technology simply ups the immersion factor. Having users already on the platform doing these things is a massive competitive advantage. This is where I believe Roblox really shines.

Roblox is a virtual platform where users can play games, build homes and explore immersive 3D experiences. According to Comscore (NASDAQ:SCOR), the platform is one of the top online entertainment platforms for teens and kids. Like any network, the more people sign up for Roblox, the more valuable and popular it becomes. This creates a positive flywheel effect for the company.

If you strip out all the advanced future tech, Roblox already has the core makings of a proper metaverse. Users interact in this virtual world in a myriad of ways. Furthermore, the company has done partnerships with real-life companies to bridge the gap between virtual and real-world experiences. One such partnership is between Roblox and sneaker company Vans (NYSE:VFC). The two companies launched a metaverse-style virtual skatepark on the platform.

According to the press release:

Vans World will provide a persistent 3D online space for visitors to practice their virtual skateboarding skills and, not incidentally, view and buy exclusive Vans clothing, shoes, and other gear directly in a storefront in the virtual location. The site will feature a shoe customizer, and a full skate shop to build the perfect board.

Another event was the Gucci Garden, where users can buy unique items for their virtual avatars. It may seem silly to buy "clothes" for your virtual self. However, virtual items are a big business as evidenced by the popularity of NFTs. In fact, a user spent $4,115 on a limited-run virtual Gucci handbag. Note that this virtual item was more expensive than its real-life counterpart.

This shows the potential appeal of the metaverse and the blurring of virtual and reality in the minds of consumers.

The Bottom Line on RBLX Stock

So, is it too late to invest in Roblox? In my mind, the answer is no.

I believe the company is only getting started and is on the growth path. RBLX stock currently has a market cap of $78 billion. Considering that Meta Platforms has gone all-in on the metaverse demonstrates the potential of Roblox, I believe RBLX stock could jump 5x to 10x higher in the long run.

On the date of publication, Joseph Nograles held a LONG position in FB. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.