Roblox Corp (NYSE:RBLX) shares are rising in extended trading Tuesday after the company announced a new share repurchase program.



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<li>Roblox stock is trending. Where are RBLX shares going?</li>
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<h2>Roblox’s Inaugural Buyback Program</h2>



After the market close on Tuesday, Roblox announced its board authorized the repurchase of up to $3 billion of the company’s common stock.



The new buyback authorization does not have a fixed expiration date. Roblox noted that it currently intends to repurchase up to $1 billion of its common stock over the next year. 



“Today’s authorization of Roblox’s first-ever share repurchase program is a testament to our confidence in the long-term opportunity ahead,” said Naveen Chopra, CFO of Roblox. 



“Investing in continued growth will always be our highest priority, but the strength of our balance sheet and free cash flow generation allows us to support industry-leading innovation while simultaneously reducing dilution.”



Roblox had $6.2 billion of total cash, cash equivalents and investments as of March 31. The company’s cash position has grown by $1.7 billion over the past year.



<h2>RBLX Shares Rally</h2>



RBLX Price Action: Roblox shares were up 4.11% in after-hours Tuesday, trading at $46.27 at the time of publication, per Benzinga Pro.



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Roblox Corp (NYSE:RBLX) shares rose 4.11% in after-hours trading following the announcement of a new share repurchase program, authorizing up to $3 billion in buybacks. The company plans to repurchase $1 billion of its common stock over the next year, reflecting confidence in its long-term growth potential. Roblox's cash position has increased by $1.7 billion over the past year, totaling $6.2 billion as of March 31.

Roblox Stock Rises After The Close: Here's Why