Gaming platform Roblox’s stock gains after Cathie Wood buys in
The California-based video game developer’s stock rose 20 percent on Thursday.
Cathie Wood's ARK Next Generation Internet exchange traded fund said it had bought more than 500,000 shares of Roblox, weighting it at 0.47 percent of the fund and adding to the strongest opening ever for a direct stock market listing [File: Brendan McDermid/Reuters]
11 Mar 2021
Shares of Roblox Corp jumped on Thursday, building on the gaming platform’s almost 55 percent rise on its stock market debut a day earlier, as well-known stockpicker and exchange traded fund (ETF) operator Cathie Wood bought into the company.
The California-based company’s stock was up 5.3 percent in late morning trades, after having risen more than 20 percent earlier in the day, also boosting the value of the shares held by founder David Baszucki – known to Roblox users as his avatar “builderman” – to more than $4.6bn.
GameStop has deja vu, Iraq reflects on oil and Martian winds blow
Meme stock frenzy: GameStop roars again with $5.9bn surge
US lawmakers grill key figures in GameStop stock probe
Saudi wealth fund plays to win with $3.3bn in video-game stock
Wood’s ARK Next Generation Internet  ETF said it had bought more than 500,000 shares of Roblox, weighting it at 0.47 percent of the fund and adding to the strongest opening ever for a direct stock market listing.
“Roblox’s blockbuster debut mirrors other gaming and broader tech IPOs that have gone live in the last six months, with high levels of demand on the secondary market after the company lists,” John Patrick Lee, ETF Product Manager at VanEck, said.
Wood, a longtime Tesla bull, has a massive online following and is a popular topic of discussion among the social-media-savvy herd of small-time traders on the Reddit forums behind disproportionate surges in the beaten-down stocks of some companies.
Message volumes on Roblox on trading-focused social media site Stocktwits soared more than ninefold on Thursday, with more than 80 percent of users’ messages reflecting positive sentiment toward the scrip, data showed.
ARK Invest on Wednesday also sold a little over 67,000 Facebook shares from the ARKW ETF, amounting to about 0.3 percent of the ETF’s assets.
Roblox was founded in 2004 by Baszucki and Erik Cassel, although its journey began in 1989 when Baszucki and Cassel programmed a 2D simulated physics lab called Interactive Physics that would later lay the groundwork for Roblox.
Baszucki joined the tech billionaire’s club after the site was valued at nearly $30bn in a funding deal late last year. His stake was valued at $4.58bn on Wednesday, according to Reuters calculations.
Usage and spending on Roblox has surged as kids stuck at home in the COVID-19 pandemic spent more time on the platform, fuelling an 85 percent year-on-year jump in daily active users in 2020 and a surge in monthly in-app sales.
“Regardless of short-term market dynamics or events, we believe that companies in the video games industry have several growth opportunities ahead,” said Pedro Palandrani, research analyst at ETF provider Global X.
An average of 37.1 million people globally log on to Roblox daily to connect with friends and play popular games such as Jailbreak, Adopt Me! and Speed Run 4.
Nasdaq jumps most since April, Bitcoin soars above $54,000
The rising prospects for turbo-charged US economic growth have been reordering the stock market’s winners and losers.
9 Mar 2021
Tech-heavy Nasdaq hits correction with 10.5% fall from peak
The Nasdaq enters corrective territory Monday, offsetting stocks that had risen on US stimulus hopes.
8 Mar 2021
‘Sorry’: Brokerage chief at heart of GameStop saga apologises
Brokerage app Robinhood’s CEO says he recognises customers were upset about temporary halt in GameStop share trading.
19 Feb 2021
Yellen wants to understand GameStop frenzy ‘deeply’
Treasury secretary says she and market watchdogs want to understand Reddit-fuelled trading mania before taking action.
4 Feb 2021
Ex-US defence chief testifies he was deceived by Elizabeth Holmes
What’s fuelling the world’s COVID-19 vaccination disparity?
US economy: Fed says tapering bond buying ‘may soon be warranted’
Apple bans Fortnite from App Store until appeals are exhausted
At Afghanistan’s ‘Guantanamo’, ex-inmates recount abuse, torture
Pakistan’s message to world on Taliban: ‘Be realistic … engage’
Has the Delta variant changed the symptoms of COVID-19?
Algeria closes airspace to all Moroccan planes
Our Channels
Our Network
Follow Al Jazeera English:
© 2021 Al Jazeera Media Network