Cathie Wood’s ARK Investment purchased 307,000 shares of Roblox Corp. The firm executed the trade on May 1, 2026. ARK reported the acquisition on May 2. This move followed a single-day stock price plunge of more than 18%. The investment signals belief in long-term growth potential despite significant insider selling over the last three months.
Roblox triggered the market downturn by lowering its full-year guidance for bookings and revenue growth in its Q1 earnings report. Management attributed the revised outlook to new safety and age-verification measures that slowed new user acquisition.
The company reported strong revenue growth during the quarter. Daily active users reached 132 million. This figure represents a 35% year-over-year increase.