While the news cycle has been largely positive on tariffs and trade over the past few weeks, a lot can happen. And the uncertainty now will likely weigh on hard economic data in the months to come.
For now investors would fare best by focusing on tariff-resistant companies. That can mean domestic U.S. companies. Or service-related companies that are less impacted by the price of goods. It can also mean virtual companies that exist beyond traditional borders.
For instance, video game developer Roblox (RBLX) reported a strong first quarter, with an increase of millions of users.
Although still operating at a loss, Roblox is trending towards profitability, and overall revenues are up 31% over the past year. Besides exceeding expectations, analysts are turning more bullish thanks to rising users and its tariff-resistant nature.
Given the high margin potential of the video game space, and the strong community Roblox is building, more upside lies ahead, even in a struggling physical economy.
Action to take: Roblox has been a momentum play for over a year now. Shares peaked at the start of the year and declined with the overall market, but look ready to break higher.
For traders, with momentum pushing shares higher, the September $80 calls, last trading for about $3.85, could see mid-to-high double-digit returns by expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.