Today, CEO of ARK Investment Management and investment mega personality Cathie Wood purchased a hefty chunk of shares for Shopify Inc (SHOP).
ARK scooped up 776,835 shares that are worth an estimated $34.8 million.
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Wood, who is known for buying well-known stocks during drops like this, was selling off a lot of ARK's Shopify shares in early 2022. But then she reversed course, buying 1,765,929 shares of the company in July 2022, which was valued at $55.7 million at that time.
In November 2022, Wood called Shopify stock "spectacular" in an interview with Bloomberg.
"It introduced us to this concept of social commerce. That's very interesting. I see my son buying clothes off of TikTok and Instagram, he doesn't go to stores at all. And Shopify enabled that," Wood said. "And I know Shopify became the largest part of the index so you might say okay, we've got that covered. Its a 3-4% position in ARKK and we think it's going to be a spectacular stock going forward."
While Shopify did beat its expectations for Q4 and even reported a surprise profit, its outlook for 2023 was weaker than expected, leading to a sharp drop in stock price on Feb. 15 that continues into today.
