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Cathie Wood’s Ark Keeps Buying: Now, It’s Roblox

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Ark on Wednesday bought 454,667 shares of Roblox as the stock slumped 27% after a weaker-than-expected earnings report.

Author:

Dan Weil

Publish date:

Feb 17, 2022 11:21 AM EST

Star investor Cathie Wood once more is trying to catch the falling knife, continuing her recent purchases of technology-company shares that are under pressure.

On Wednesday it was online videogame platform Roblox  (RBLX) – Get Roblox Corp. Class A Report. Exchange-traded funds managed by Wood’s Ark Investment Management bought 454,667 shares of the San Mateo, Calif., company, as the stock slumped 27% after a weaker-than-expected earnings report.

Ark’s flagship fund, Ark Innovation ETF  (ARKK) – Get ARK Innovation ETF Report, bought 337,552 of the shares, while Ark Next Generation Internet ETF  (ARKW) – Get ARK Next Generation Internet ETF Report took home 117,115 shares.

Ark Innovation’s portion was valued at $18.2 million at Wednesday’s close and $18.6 million in recent trading. Ark Next Generation’s kitty was worth $6.3 million at Wednesday’s close and $6.5 million in recent trading.

That makes for a total of $24.5 million at Wednesday’s close, and $25.1 million in recent trading.

Wood has stressed in recent weeks that the beatdowns inflicted on young, disruptive technology stocks are buying opportunities for her.

“The important thing to keep in mind is the long-term horizon that we invest in,” she told investors last month. “We have a five-year horizon. I’ve never seen innovation on sale like it is today.”

In recent weeks, Ark also has purchased financial services company Block  (SQ) – Get Square, Inc. Class A Report, online brokerage firm Robinhood  (HOOD) – Get Robinhood Markets, Inc. Class A Report, online sports gambling company DraftKings  (DKNG) – Get DraftKings Inc Class A Report and video meeting platform Zoom Video Communications  (ZM) – Get Zoom Video Communications, Inc. Class A Report.

On Monday, Ark picked up more than 145,000 shares of Singapore-based Sea Ltd.  (SE) – Get Sea Ltd. (Singapore) Report, a digital entertainment/e-commerce/videogame/digital financial services business.

Sea stock on Monday gave up 18% after India banned one of its premier videogames, Free Fire. Ark’s purchase was recently valued at about $20.3 million.

The Ark Innovation ETF has dropped 55% over the past year.

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