Investing

Cathie Wood’s ARK Invest Buys Over 500,000 Shares of Roblox

One of the ARK exchange-traded funds run by ETF star Cathie Wood made a huge purchase on Tuesday. Accordingly, this fund bought over 500,000 shares of Roblox Corp. (NYSE: RBLX) shares on Wednesday, as the price of this ETF was relatively flat on the day. Note that this ETF is still up over 100% in the last year.

ARK Next Generation Internet ETF (NYSEARCA: ARKW) bought 519,086 shares of Roblox. At Wednesday’s closing price this would have valued this purchase at roughly $36 million. Even though this is a small fraction of the total holdings, every little bit counts. ARKW is up 157% in the last year.

24/7 Wall St. recently reported on Roblox:

The company was founded in 2004. Roblox is an online game platform and game creation system that allows users to program games and play games created by other users. Roblox is free to play, but there are in-game purchases available.

Users are able to create purchasable content through one-time purchases, known as “game passes,” as well as microtransactions that can be purchased more than once, known as “developer products” or “products.” A percentage of the revenue from purchases is split between the developer and Roblox.

As of August 2020, the company boasted over 164 million monthly active users, with over half of these users being made up of children aged 16 and under in the United States.

Daily active users on Roblox grew 47%, from 12.0 million in 2018 to 17.6 million in 2019, and they grew 82%, from 17.1 million in the nine months ended September 30, 2019, to 31.1 million in the nine months ended September 30, 2020.

In terms of the finances, revenue grew 56% from $312.8 million in 2018 to $488.2 million in 2019. At the same time, the net loss was $97.2 million and $86.0 million in 2018 and 2019, respectively.

Catherine Wood, the CEO and CIO of ARK Investment Management LLC is a minority and non-voting shareholder of 24/7 Wall St., LLC, owner of 247wallst.com.