In this article, we discuss Cathie Wood’s latest thoughts on inflation and her 5 worst-performing stock picks. If you want to read about some more stocks in the Wood portfolio, go directly to Cathie Wood’s Latest Thoughts on Inflation and Her 10 Worst-Performing Stock Picks.
5. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 40
Loss in Share Price Year-to-Date as of June 30: 65.57%
Roblox Corporation (NYSE:RBLX) owns and runs an online entertainment platform. Regulatory filings reveal that ARK owned over 6 million shares of Roblox Corporation (NYSE:RBLX) at the end of March 2022 worth $281 million, representing 1.17% of the total portfolio. On June 15, the company reported a more than 17% year-on-year rise in daily active users for the month of May, sending the shares surging more than 7%. The revenue during the month also grew by around 30% compared to May 2021.
On June 17, Truist analyst Matthew Thornton downgraded Roblox Corporation (NYSE:RBLX) stock to Hold from Buy and lowered the price target to $29 from $36, noting the firm screened “least favorably” among the digital entertainment group on revision trends and valuation.
At the end of the first quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Roblox Corporation (NYSE:RBLX), compared to 61 in the previous quarter worth $4 billion.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“Roblox Corporation (NYSE:RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox Corporation (NYSE:RBLX) rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.