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ARK Invest CEO and CIO Cathie Wood purchased the dip in Roblox Corporation (NYSE:RBLX) on Wednesday after the online gaming platform dropped 26.5%. The slide followed fourth-quarter results that failed to meet Wall Street’s expectations.
Wood scooped up 454K shares of RBLX, valued at roughly $24M. ARK’s move was split between her flagship fund ARK Innovation ETF (NYSEARCA:ARKK), and ARK Next Generation Internet ETF (NYSEARCA:ARKW). ARKK picked up 337K shares, and ARKW grabbed 117K new shares.
Data from ARK’s daily disclosed trade records show that RBLX is ARKK’s 28th largest holding, weighted at 1.05%, and has a market value of $131.16M. Furthermore, RBLX is ARKW’s 17th biggest holding, weighted at 2.67%. In that fund, the stock has a market value of $70.99M.
Year-to-date price action: RBLX -47%, ARKK -24%, and ARKW -22.7%.
As markets gear themselves up for Thursday’s session, there appears to be some light ahead for Roblox, as the stock is +1.5% in the premarket (as of 8:35 AM ET).
Wood is not afraid to come in and buy the dip when it comes to innovative stocks that she believes in. The asset manager snatched up 146K shares of Sea Limited (NYSE:SE) on Monday after the stock fell.