Cathie Wood's Ark Invest added millions of dollars of shares of Roblox to two different funds on Wednesday, as the gaming stock tanked after a quarterly report. Wood added 337,552 shares of Roblox in the flagship Ark Innovation ETF (ARKK) fund and another 117,115 shares in the Ark Next Generation Internet ETF (ARKW) . Combined, the trades likely would have cost between $24.1 million and $26.8 million, based on Roblox's trading range on Wednesday. The purchases came on Roblox's worst day as a public company. The stock dropped 26.5% on Wednesday after Roblox reported a wider-than-expected loss and a revenue miss for the fourth quarter . Wall Street analysts cited a slowdown in bookings as a concern for the company. On Thursday's "Halftime Report," Wood said that the growth in users above 13 years old was a positive development in the quarter and was one of the reasons Ark bought more shares. Wood, who rose to prominence in 2020 for her bets on tech stocks that soared in the early days of the pandemic, has made a habit of buying the dip in her favorite names as the high-growth areas of the market have struggled in recent months. In recent months, Wood has doubled down in positions such as DraftKings, Zoom Video and Block during sell-offs for those stocks. The Ark Innovation ETF has struggled mightily since outperforming the market and drawing significant inflows during 2020. The fund shed more than 20% last year and is down nearly 23% since the start of 2022. Meanwhile, the Ark Next Generation Internet ETF has lost roughly 50% of its value over the past 12 months.
Cathie Wood's Ark Invest added millions of dollars of shares of Roblox to two different funds on Wednesday, as the gaming stock tanked after a quarterly report.