Roblox Corp experienced a big stock jump last Thursday after stockpicker and exchange-traded fund (ETF) operator, Cathie Wood, bought into the company. Wood’s ARK Next Generation Internet ETF announced it bought more than 500,000 shares of Roblox stock, causing the value of the stock to increase by 20% in a single day.
John Patrick Lee is the ETF Product Manager at VanEck. He stated Roblox’s success is a new and emerging trend. “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,” Lee said.
Roblox is a children’s gaming platform founded in 2004 by David Baszucki and Erik Cassel. As of last week, the company is valued at $45.3 billion on the New York Stock Exchange.