Cathie Wood makes $7.9 million swing into former pandemic-darling stock | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Cathie Wood entered the Nov. 18 session with a clear idea of what she was looking to own, and popular metaverse stock Roblox (RBLX) was at the top of that list.

ARK Invest scooped up 78,096 shares worth about $7.9 million, her largest trade of the day and her most aggressive bet on Roblox in months.

That’s coming at a point when Roblox shakes off its “pandemic darling” label, posting some of its strongest engagement and booking numbers in its rich history.

Also, in classic ARK fashion, the buying comes alongside cuts in Pinterest, Reddit, and Teradyne, with Wood rotating out of slower-growth social media platforms and much deeper into interactive digital worlds.

Cathie Wood is sliding back into Roblox, snapping up millions in shares.

Photo by Bloomberg on Getty Images

Why Roblox was Cathie Wood’s biggest buy of the day

Wood made Roblox her biggest bet because the story finally flipped.

We saw bookings re-accelerate, user growth surge, and a spike in engagement numbers that the market hadn’t quite priced in.

Roblox tops ARK’s sheet with a $7.9 million buy

Cathie Wood lunged back into Roblox, with ARK buying up 78,096 shares spread across ARKK and ARKF, a whopping $7.9 million swing that quickly turned into her largest trade of the day.

For perspective, the other additions weren’t even close, as the Roblox buy basically dwarfed additions in fintech, crypto, e-commerce, and biotech.

It also marked a clear reversal from months of selling, with ARK Invest unloading over 460,000 shares in July and an additional9,100in October. This wasn’t exactly averaging down, but Wood moving back in just when Roblox’s fundamentals hit a new stride.

Other ARK Nov. 18 buys

Klarna: 93,218 shares ($3.25 million)
Circle: 40,071 shares ($3.07 million)
Shopify: 33,992 shares ($4.76 million)
Recursion: 50,728 shares ($2.09 million)
CRISPR Therapeutics: 47,751 shares ($2.64 million)
Coinbase: 11,620 shares

Roblox’s fundamentals finally broke through

Roblox didn’t just post a strong quarter; it delivered the kind of numbers that effectively reset the narrative.

Q3 bookings came in strong at an attractive $1.92 billion, surging past the $1.7 billion estimate, with Reuters reporting that the company bumped full-year bookings to $6.57-$6.62 billion (its third hike of the year).

Moreover, user behavior told the same story.

Daily active users increased by a remarkable 70% year over year, marking the biggest jump in five years, while total hours played reached an eye-popping 40 billion.

Additionally, its viral hit in “Steal a Brainrot” drew over 25 million concurrent players, underscoring that Roblox can continue to create cultural moments on a massive scale.

Fund manager buys and sells

The fundamentals weren’t the only thing that changed course.

Roblox’s stock ran from under $60 to over $130 this year, posting a superb 76% gain year to date.

In the past month, however, the stock is down 24%, setting up a classic Cathie Wood “buy the dip” moment.

The cuts behind Cathie Wood’s Nov. 18 rebalance

Wood’s Roblox buy was the clear headline, but the other side of the trade sheet told the rest of the story.

ARK freed up capital, and its trimming pointed in the same direction, cutting back from ad-driven, slower-growth platforms while reallocating toward user-driven ecosystems.

Social media and platform cuts

Pinterest: Sold 203,244 shares ($5.19 million).
Reddit: Sold 11,447 shares ($2.15 million), after selling 16,540 shares the previous day.
Teradyne: Position trimmed (size undisclosed in filing).

Why Roblox is still a core ARK holding

Wood keeps coming back to Roblox, and to gauge why, it starts with what the company actually is.

Roblox isn’t just a video game, but more of a user-generated content platform that’s more like YouTube than Electronic Arts.

Creators can effectively develop immersive experiences in days such as the breakout “Squid Game” mode, and bigger brands now treat Roblox as digital infrastructure.

Nike, the NFL, and Dave & Buster’s have all built metaverse-type worlds within the platform, which opens the door to ads, sponsorships, and virtual commerce.

For more color, the metaverse is essentially a collection of 3D digital spaces where users can relax, work, play games, attend concerts, and even shop.

Depending on the definition, long-term growth estimates for the market range from $800 billion to over $1 trillion by the early 2030s.

The real surprise came just after the pandemic.

Monthly users skyrocketed from 30 million to 120 million, with engagement levels reaching insane levels during the lockdown period. However, the results that followed buckled under the pressure of tougher comps, but in the past few quarters, we’re seeing a stellar revival.

That’s exactly why ARK still owns nearly 5.3 million shares ($540 million, about 3.7% of its portfolio) in Roblox stock, according to Stock Circle.