Cathie Wood-led Ark Investment Management on Wednesday raised its exposure in Roblox Corp (NYSE:RBLX) on the day shares of the social gaming platform plummeted after it reported worse-than-expected fourth-quarter results.
The popular money managing firm bought 454,707 shares — estimated to be worth $24.49 million — in Roblox.
Roblox shares closed 26.5% lower at $53.8 a share on Wednesday. The stock is down 45.5% year-to-date.
Ark Invest holds shares in Roblox via the Ark Innovation ETF (NYSE:ARKK) and the Ark Next Generation Internet ETF (NYSE:ARKW).
The two ETFs held 3.3 million shares — worth $242.5 million — in Roblox, prior to Wednesday’s trade.
Roblox reported a quarterly loss of 25 cents per share, below the estimate for a loss of 14 cents per share. The company reported quarterly revenue of $568.8 million, which was up 82% from the fourth quarter of 2020.
See Also: Why Roblox Shares Are Falling Today
Roblox operates a free online platform with millions of games and other entertainment experiences made by its own users who are young game creators.
Wood has been buying shares in the California-based Roblox since its direct listing in March last year. The popular stock picker has been betting on tech-focused innovation stocks and has a tendency to buy shares in companies on the dip.
Here are a few other key Ark Invest trades on Wednesday:
- Sold 225,340 shares —estimated to be worth $8.16 million— in Twitter Inc (NYSE:TWTR). Shares closed 2% lower at $36.2 a share on Wednesday.
Photo: Courtesy of Robolox
