Cathie Wood-led Ark Investment Management on Wednesday bulked up on the shares of video game developer $Roblox(RBLX.US)$, which reported disappointing results earlier this week.
What Happened: Ark bought 191,503 shares of Roblox, valued at over $9 million, via three of its exchange-traded funds (ETFs), the firm's disclosure showed. Roblox is the 16th largest holding in the firm's flagship $ARK Innovation ETF(ARKK.US)$, with a weight of 2.80%.
Roblox shares rise 11% in early market trading on Thursday, despite the disappointing second-quarter results the company reported before. Following the results, Morgan Stanley analyst raised the price target for the stock from $25 to $32, while maintaining the rating at Equal-Weight. Over the past month, the stock has gained about 25%.Ark Sheds Block Shares: Ark, through two of its ETFs, sold 195,618 shares of financial services and digital payments company $Block(SQ.US)$ valued at over $17 million. Block is the fourth largest holding of Ark Innovation ETF with a weight of 4.89%. The ETF currently holds over 5.6 million shares of the firm valued at over $498.3 million.
Block is led by Bitcoin bull Jack Dorsey and the entrepreneur has frequently highlighted a Bitcoin-centric future for the fintech company.
Ark sold $75 million worth of $Coinbase(COIN.US)$, another crypto-linked stock, late last month after the U.S. Securities and Exchange Commission alleged the cryptocurrency exchange listed unregistered securities. The decision to sell Coinbase shares is due to the regulatory uncertainty in the crypto industry, Ark founder Wood recently said in an interview with Bloomberg.
Other Buys: Ark's other purchases on Wednesday include $Twilio(TWLO.US)$ and $Pacific Biosciences of California(PACB.US)$.