Cathie Wood Bets Big On Roblox With $19.5M Purchase — Also Loads Up On This Biotech Stock

Cathie Wood-led ARK Investment Management loaded up over 484,000 shares of video-game developer Roblox Corp RBLX valued at over $19.48 million based on Monday's closing price.

What Happened: The purchase was done via the ARK Innovation ETF ARKK, the ARK Next Generation Internet ETF ARKW and the ARK Fintech Innovation ETF ARKF.

Metrics: ARK's purchase comes on a day when Roblox shares closed 11.98% lower following the release of key March metrics by the company. The company said daily active users totaled 66.2 million last month, representing an increase of 26% year-over-year. Hours engaged also jumped 26% to 4.8 billion.

Also Read: How To Buy ARK Innovation (ARKK) ETF

Roblox said estimated revenue stood between $212 million and $223 million, up 15%-21% on a year-over-year basis.

However, the company’s estimated average bookings per daily active user, or ABPDAU, stood between $3.73 and $3.85, which represents a year-over-year change of -2% and +1%.

Roblox said it will no longer report metrics on a monthly basis. "While we believe that has provided incremental information to investors regarding the seasonality of the business, we have decided to cease providing key monthly metrics to align our reporting cadence with our value of taking the long view," it said.

Although the stock has taken a beating in the short term, it has gained over 44% since the beginning of the year. The company is scheduled to announce its first quarter earnings in May.

Other Buy: ARK's funds also increased their stake in biotech comopany Ginkgo Bioworks Holdings Inc DNA having bought over 631,000 shares of the firm at an estimated valuation of over $770,000.

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Posted In: EquitiesNewsBroad U.S. Equity ETFsMarketsETFsARK Investment ManagementCathie Wood
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