Cathie Wood's ARK Invest has sold some Roblox stock, taking advantage of the gaming company's 42% gain on Tuesday following good quarterly results.
The asset manager said it has sold 82,267 Roblox shares from its ARK Next Generation Internet ETF portfolio, which are worth roughly $9 million based on the stock's Tuesday closing price.
Since its initial public offering in March, the company's stock price has more than doubled to $109.52, adding $18.7 billion to its market capitalization.
In premarket trade on Wednesday, shares of Roblox, which promotes itself as a metaverse firm, fell roughly 4%.
The company, which was founded in 2004, has spent a decade developing a virtual platform - or, as the new phrase in the computer world goes, the metaverse - where its customers may connect and play games.
This should benefit Roblox at a time when other video game businesses, such as Electronic Arts, Activision Blizzard, and Take-Two Interactive, as well as social networking companies, are trying to create a metaverse around their products to keep customers interested.
According to Rupantar Guha, gaming analyst at analytics firm GlobalData, Roblox has attracted a number of well-known brands, including Gucci, Vans, and Netflix, all of which are aiming to get a head start in the metaverse and attract next-generation consumers.
"As the metaverse evolves, growing brand involvement will expand Roblox's user base from children to adults, bringing more development."
On Monday after market close, Roblox, the maker of the famous games "MeepCity" and "Adopt Me!" reported a 28% increase in third-quarter bookings to $637.8 million. During the epidemic, millions of pre-teens resorted to video games for entertainment, giving the firm a boost.