Cathie Wood's Firm Makes Major Investment in a Stock That Fell 16% on Thursday
Why Wood believes this stock is one to watch.
Why Wood believes this stock is one to watch.
Today, CEO of ARK Investment Management and investment mega personality Cathie Wood purchased a hefty chunk of shares for Shopify Inc (SHOP) - Get Free Report.
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.
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