Cathie Wood Buys Roblox, Palantir Dips — Ark Invest Seizes Buying Opportunities Following Earnings Reports

On Wednesday, Cathie Wood-led Ark Invest made a significant move by purchasing shares of Roblox Corp RBLX following its recent quarterly earnings report. The decision comes after Roblox’s stock took a hit post its second-quarter earnings announcement.

The Roblox Trade

Ark purchased a total of 865,287 worth $25.5 million at the closing price of $29.46 through its ARK Innovation ETF ARKK, ARK Next Generation Internet ETF ARKW and Ark Fintech Innovation ETF ARKF.

Roblox reported a 22% year-on-year growth in second-quarter FY23 Bookings, amounting to $780.7 million. However, the revenue, which grew by 15% Y/Y to $680.8 million, missed the consensus by over $100 million. The company’s EPS loss of $(0.46) also missed the consensus by a cent.

Despite the Average Daily Active Users (DAUs) seeing a 25% Y/Y increase, standing at 65.5 million, and Hours Engaged rising by 24% Y/Y to 14 billion, the Average Bookings per DAU (ABPDAU) dropped by 3% Y/Y. This slowing growth has investors concerned, leading to a 20.503% drop in RBLX shares, trading at $30.01.

Furthermore, Roblox recently announced its expansion to Meta Platforms‘ Quest virtual reality (VR) headsets. This move aims to bring the online game to a growing community of VR enthusiasts. The game will soon be available in beta version on Quest 2 and Quest Pro, and will also be compatible with the upcoming Quest 3. With a daily login of over 66 million users across various platforms, Roblox’s expansion to VR is expected to make the virtual realm even more social.

See Also: Palantir Post-Q2 Earnings: Share Price Dip Doesn’t Deter Cathie Wood; Ark Invest Buys $14M Worth Of Shares

Other Key Trades:

• Palantir Technologies Inc PLTR – Bought 14,275 shares through the Fintech Innovation fund. Ark also purchased 92,899 shares through the Innovation Fund and 15,550 shares through the Next Generation ETF.
• NVIDIA Corp NVDA – Sold 3,848 shares through the Fintech Innovation fund.
• ROKU Inc ROKU – Sold 12,039 shares through the Next Generation Internet ETF.
• CRISPR Therapeutics AG CRSP – Bought 11,410 shares through ARK Genomic Revolution ETF ARKG.
• 2U Inc TWOU – Bought 801,471 shares through Innovation Fund.

Read Next: Cathie Wood’s Ark Invest Continues Tesla Selling Spree Despite Stock’s Rise & AI Potential