Gaming stocks have had it rough over the past six months. Whether it's mainstays like Nintendo, down 43%, or newer players like Sea Limited, down 27%, the industry has been hammered since October.
However, there's one gaming company that takes the cake: Roblox (RBLX 5.23%), the popular platform for pre-teens and teens, has seen its shares fall 52% over the past six months:
NYSE: RBLX
Key Data Points
However, that may be about to change. A number of Wall Street insiders have been snapping up shares of Roblox in recent days and weeks. Could they be onto something?
Who's buying
The most recent buyer of Roblox shares was billionaire investor Cathie Wood. Her ARK Invest ETFs have on a Roblox-buying spree in recent days. On Feb. 9, three different ARK funds -- the ARK Next Generation Internet ETF (ARKW 2.09%), the ARK Blockchain & Fintech Innovation ETF (ARKF 2.38%), and the flagship ARK Innovation ETF (ARKK 3.01%) -- purchased a combined $10.3 million in Roblox stock, with the bulk of it ($7.4 million) going to the ARK Innovation ETF.
But she didn't stop there: The very next day, Feb. 10, those same three funds picked up an additional $7.2 million in Roblox stock, for a total buy of $17.5 million over two days.
Image source: Roblox.
The ARK Invest funds join a who's who of prominent investment firms that have recently bought shares of Roblox. In its latest quarterly filing, major investment firm Blackrock disclosed a total purchase of more than 2 million Roblox shares. Other big investment companies like State Street and Vanguard Group each added more than a million total Roblox shares to their respective portfolios.
Of course, this doesn't guarantee a speedy turnaround for Roblox, but it shows that the stock is attractive enough to major Wall Street insiders at this point for them to quietly start buying.
