Cathie Wood's ETFs have been buying up stock in this online-gaming company

MW Cathie Wood's ETFs have been buying up stock in this online-gaming company

By Tomi Kilgore

ARK Invest ETFs have snapped up 2 million shares of Roblox since they tumbled after disappointing earnings

Shares of Roblox Corp. have tumbled in the wake of the online-gaming company's disappointing quarterly earnings report, but ARK Invest founder and Chief Executive Cathie Wood seems to believe that makes them much more attractive.

Wood's ARK Invest exchange-traded funds have bought a total of 2 million Roblox shares $(RBLX)$ over the past week, with purchases made every day through Thursday since the company reported its results on May 9. The ETFs won't disclose their Friday trading activity until well after the close.

Based on the closing prices of the shares on each day they were purchased, the Roblox stock purchased by ETFs would be worth a little more than $61 million.

The investment firm's flagship ARK Innovation ETF ARKK alone has bought about 1.5 million shares, valued at around $46.8 million. Of that total, the ETF bought 1.32 million shares on May 9, when Roblox's stock sank 22.1% to close at a seven-month low after the results.

Read: Roblox's stock tumbles after a big revenue miss, and worries about 'engagement'

Keep in mind that the ARK Innovation ETF hasn't done so well as of late, having dropped 9.6% over the past three months while the S&P 500 index SPX has gained 5.8%. Meanwhile, Roblox shares, which were down 0.6% in afternoon trading on Friday, have shed 24.1% in the past three months.

Roblox is now the ARK Innovation ETF's sixth-largest holding as of Friday's opening bell, with a market value of $325.84 million. That means the ETF has boosted its stake in Roblox by roughly 17% over the past six trading days.

Among other ARK ETFs, the ARK Next Generation Internet ETF ARKW has bought 319,000 shares of Roblox, valued at about $9.8 million, from May 9 through Thursday, while the ARK Fintech Innovation ETF ARKF has bought 149,200 shares of the company valued at $4.6 million.

-Tomi Kilgore

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May 17, 2024 13:43 ET (17:43 GMT)

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