Medha Singh, Tiyashi Daatta

(Reuters) – Cathie Wood, ARK Invest sold Roblox stock. This was in response to Tuesday’s 42% increase following strong quarter results.

According to the asset manager, it has sold 82,267 Roblox shares – worth approximately $9 million based upon Tuesday’s closing price – from its ARK Next Generation Internet TF portfolio.

This surge enabled the company to more than double its stock market price, to $109.52, since March’s market debut. It also added $18.7 million to its market capitalization.

Roblox shares, which is described as a metaverse-company, fell about 4% on Wednesday in premarket trades.

The company was founded in 2004 and has been working for over a decade on a virtual platform, or what is being called the “metaverse” in tech. It allows users to interact with each other and plays games.

Roblox will benefit from this at a moment when videogame companies such as Electronic Arts Inc Activision Blizzard, (NASDAQ) and Take-Two Interactive are all trying to create a social universe around their products in order to maintain users’ engagement.

Roblox is attracting a lot of famous names like Gucci and Vans (NASDAQ:), who want to be in the metaverse early and attracted next-generation consumers. Rupantar Guha from GlobalData, an analytics firm’s gaming analyst, explained that Roblox was able to attract Vans and Gucci.

Roblox is growing brand involvement, meaning Roblox’s user base will be expanded from children and adults to support its metaverse growth.

Roblox, best known for “MeepCity,” and “Adopt Me!The company reported an increase of 28% in bookings for the third quarter to $637.8 millions on Monday, after-market close. The business was able to get a boost in the aftermath of the epidemic when pre-teens resorted to playing video games as entertainment.