Roblox Corporation's stock surged 5.74% in after-hours trading on Tuesday following the company's announcement of its inaugural share repurchase program.

The significant price movement comes as Roblox authorized a share repurchase program of up to $3 billion, with the company intending to buy back up to $1 billion over the next twelve months. Share repurchase programs typically signal management confidence in the company's financial health and future prospects, while also potentially increasing earnings per share by reducing the number of shares outstanding.