Tech

Roblox shares jump after Cathie Wood's fund buys on first trading day

Key Points
  • Shares of Roblox jumped Thursday after it was revealed one of Cathie Wood's funds bought into the stock on its first trading day.
  • The Ark Next Generation Internet ETF added more than 500,000 shares of the stock, which accounted for about 0.5% of the fund's portfolio.
  • It comes after the company soared more than 54% in its market debut on Wednesday.
The New York Stock Exchange welcomes executives and guests of Roblox (NYSE: RBLX), today, Wednesday, March 10, 2021, in celebration of its Direct Listing.
NYSE

Shares of Roblox, a kids gaming app, jumped as much as 12% Thursday after it was revealed one of Cathie Wood's funds bought into the stock on its first trading day.

Shares closed up 6.3%.

The Ark Next Generation Internet ETF added more than 500,000 shares of the stock, which accounted for about 0.5% of the fund's portfolio, according to a daily trading disclosure. The position was worth roughly $36.1 million, as of Wednesday's closing price.

It comes after the company soared more than 54% in its market debut on Wednesday. Shares, referenced to open at $45 per share, began trading at $64.50 and closed at $69.50 apiece, giving the company a market cap of $38.26 billion. Based on a fully diluted share count of 652 million, which includes restricted stock units that will convert to common stock, the company was worth $45.3 billion, as of its closing price.

Roblox hits the market coming off an explosive year of growth, primarily from kids who were stuck at home because Covid-19 forced schools to close and sports leagues to shut down. In the game, users create avatars that they can move between the millions of games on the service, navigating theme parks, adopting virtual pets and fighting enemies with their friends.

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