Shares of Roblox (RBLX) have continued to increase over a week after the company reported strong metrics for September.
Roblox stock traded up around 20% last Monday, October 17, following the release of the company’s key metrics for the month prior. The stock has continued to grow, increasing 7.38% on a total return basis in the past five days, and growing 28.65% over one month as of October 25, according to YCharts. Weighted 5.09%, Roblox is a top 10 holding in the ARK Next Generation Internet ETF (ARKW). The ETF has returned over 11% in the past five days.
Roblox last week reported a 23% increase in daily active users (DAUs), and growth in estimated bookings accelerated from 5%-7% in August to 11-15% in September, while total hours engaged increased 16%, ARK Invest wrote in a recent commentary.
“Given the headwinds facing gaming companies –– including exchange rate volatility and negative consumer sentiment –– Roblox’s monetization growth and strong engagement seem to suggest a share shift toward its platform,” ARK wrote. “Roblox’s global platform facilitates user-generated digital entertainment in addition to a 3D engine that allows third-party developers to create games and experiences.”
ARKW’s other top holdings as of October 26 include Zoom Video Communications (ZM, 8.24%), Tesla Inc (TSLA, 8.16%), Coinbase Global Inc (COIN, 7.53%), Roku Inc (ROKU, 6.64%), Block Inc (SQ, 6.07%), Grayscale Bitcoin Trust BTC (GBTC, 5.80%), Twilio Inc (TWLO, 5.77%), DraftKings INc (DKNG UW, 4.96%), and Shopify Inc (SHOP, 4.79%), according to the fund’s website.
Companies within ARKW are focused on and expected to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new, and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media.
The companies included in ARKW may develop, produce, or enable cloud computing and cybersecurity, e-commerce, big data, artificial intelligence, mobile technology, the internet of things, social platforms, blockchain, and P2P, according to the fund’s website.
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