Roblox gains steam after market debut as Cathie Wood’s Ark picks up shares

Roblox gains steam after market debut as Cathie Wood’s Ark picks up shares

News: Roblox gains steam after market debut as Cathie Wood’s Ark picks up shares.

(Reuters) – Roblox Corp’s shares rose Thursday, building on the gaming platform’s nearly 55% surge on its IPO the day before, when well-known stock picker and exchange-traded fund operator Cathie Wood bought into the company.

The California-based company’s stock rose 5.3% late this morning after rising more than 20% earlier in the day. This also increased the value of the shares of founder David Baszucki, known to Roblox users as his avatar builder. – to more than $ 4.6 billion.

Wood’s publicly traded internet fund ARK Next Generation (ETF) said it bought more than 500,000 Roblox shares, weighed 0.47% of the fund, and contributed to the largest ever opening to direct listing.

“Roblox’s blockbuster debut reflects other gaming and technology IPOs that have gone live in the past six months, and secondary market demand is high for the company listings,” said John Patrick Lee, ETF product manager at VanEck .

Wood, a longtime Tesla bull, has a large online following and is a popular topic of discussion among the social media savvy herds of small traders on the Reddit forums who have seen disproportionate increases in run-down stocks in some companies.

Roblox news volume on trade-oriented social media site Stocktwits rose more than nine times on Thursday, with more than 80% of user messages reflecting positive sentiment towards the scrip, data showed.

ARK Invest also sold just over 67,000 on Wednesday Facebook Shares in the ARKW ETF, which make up around 0.3% 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 laboratory, Knowledge Revolution, that later laid the foundation for the company.

After the sale of Knowledge Revolution in 1998, the duo started working on Roblox. Cassel died in 2013 after battling cancer for three years.

Baszucki kicked it TechBillionaires Club after the site was valued at nearly $ 30 billion under a funding deal late last year. According to Reuters calculations, its share on Wednesday was $ 4.58 billion.

Roblox usage and spending have increased as children stuck at home in the COVID-19 pandemic spent more time on the platform. This resulted in an 85% increase in daily active users in 2020 year over year and an increase in monthly in-app sales.

“Regardless of short-term market dynamics or events, we believe companies in the video game industry have multiple growth opportunities ahead of them,” said Pedro Palandrani, research analyst at ETF provider Global X.

An average of 37.1 million people around the world log into Roblox every day to connect with friends and play popular games like Jailbreak, Adopt Me! To play. and “Speed ​​Run 4”.

Reporting by Noor Zainab Hussain, Aaron Saldanha and Tiyashi Datta in Bengaluru; Adaptation by Patrick Graham and Saumyadeb Chakrabarty

Original Source © Reuters

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