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(Bloomberg) – A tough period of performance for Cathie Wood hasn’t diminished her ability to support a stock’s fortunes, if Roblox Corp. is something to do.
The newly listed digital games company jumped nearly 12% early in Thursday, on the verge of building on a stellar day one rally after Wood’s Ark Investment Management revealed it had taken a participation in society.
The $ 7.1 billion ARK Next Generation Internet exchange-traded fund (ticker ARKW) has bought more than 500,000 Roblox shares, according to the latest data on Ark’s website. The New York-based fund manager estimates the market value of the stake at just over $ 36 million.
This is another good sign for Wood, whose funds have recovered after being caught in a large tech sell-off that caused three weeks of losses. At the height of the frenzy surrounding Ark in recent months, the firm has fueled rallies like DraftKings Inc. after announcing stakes and even triggering gains for its competitors by revealing plans for a space ETF.
Wood’s involvement adds new attention “to a stock that might have fallen under people’s radar,” said Mohit Bajaj, ETF director of WallachBeth Capital.
Read more: Cathie Wood’s vision for the ETF space is rocketing the industry
Roblox jumped 54% in its debut on Wednesday. The company, based in San Mateo, Calif., Is one of the few to have gone public through a direct listing, an alternative to an initial public offering in which the shares begin trading without the listing. company does not issue new shares. Roblox saw its revenue and valuation increase as the pandemic kept people in their homes and in search of entertainment.
ARKW climbed 3.7% in the pre-market, while Wood’s flagship fund, the ARK Innovation ETF (ARKK), rose 3.8%. It posted the biggest jump on record earlier this week amid a rebound in tech stocks.
“Even though the ETF fell around 30% to its recent low, it still rose 250% in the past 12 months,” said Matt Maley, chief market strategist at Miller Tabak + Co. . loses his rock-star status.
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