Ark Invest Stock Portfolio: Top 10 Picks

5. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Investors  in Q1 2024: 50

Ark Investment Management’s Q2 2024 Stake: $496 million

Roblox Corporation (NYSE:RBLX) is a technology company that provides an online platform that allows users to immerse themselves in a digital world. Like Facebook, this means that its story depends on revenue and profitability per user, and since Roblox Corporation (NYSE:RBLX) is a young company that aims to popularize a new platform, growth is another key metric for its performance. Additionally, the software nature of its products means that Roblox Corporation (NYSE:RBLX) has to tightly control costs or incur Wall Street’s wrath. After crashing in May, Roblox Corporation (NYSE:RBLX)’s shares have gained roughly 10% in July as sentiment surrounding its DAUs continues to improve. June saw Sensor Tower share that Roblox’s DAU grew by 28% annually in April. Additionally, the firm is also diversifying its revenue base away from in game purchases to also include areas such as video advertising.

On the advertising front, here’s what management shared during the Q1 2024 earnings call:

“We want to — this is the year we are focusing on advertising, portal and video. We are excited about in world physical shopping, partially because it is a way for our partners to attribute and measure the success of their ads in addition to buy stuff. So in World Shopping is very early. We are not incorporating that revenue in any of our models for really ’24 or ’25. But it does point to a future where just as being with friends together on Roblox when you’re playing or you’re playing hide & seek or you are socializing or whatever that — it’s an exciting what we believe new way over time, that more people will shop together. And we do see a future over time without any forecast or expected dates, we are going with friends to shop together in 3D trying things on buying physical items is going to be part of what people think of Roblox.”