Cathie Wood Trims Stake In This Chipmaker And Makes Whopping $34M Buy In Shopify

Cathie Wood-led ARK Investment Management made a whopping buy in Shopify Inc SHOP shares, loading up 776,835 shares of the company at an estimated valuation of over $34.8 million based on Thursday's closing price.

The purchase was done via the flagship ARK Innovation ETF ARKK, the ARK Next Generation Internet ETF ARKW and the ARK Fintech Innovation ETF ARKF.

Also Read: How To Buy Shopify (SHOP) Stock

Shares of the company closed 15.88% lower on Thursday and lost another 2.05% in extended trading.

Shopify reported its quarterly earnings on Thursday and said its total revenue increased 26% to $1.7 billion compared to the prior year. However, the company's operating loss came in at $188.7 million, or 11% of revenue, versus income of $14.4 million, or 1% of revenue, for the comparable period a year ago.

Following the pandemic-related disruptions, Shopify briefly rose to become Canada’s most valuable firm before online demand cooled as economies reopened and forced it to come out with new products, increase investments and focus on social media integration, Reuters reported.

The aggressive investments and macro warnings by the company have caused concern among investors, the Reuters report said.

Company president Harley Finkelstein stated during an interview on Thursday, "Our outlook reflects the prudence that we think is necessary in this macro environment."

“It is important right now in this particular macro that you grow the business but you also continue to let revenue fall to the bottom line,” he added.

Major Sale: ARK funds sold over 40,000 shares of chipmaker NVIDIA Corporation NVDA at an estimated valuation of over $8.8 million.

Read Next: Tesla Stock Skids On Recall Notice For Full Self-Driving Collision Potential: What You Need To Know

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Posted In: NewsBroad U.S. Equity ETFsMarketsTechETFsARK Investment ManagementCathie Wood
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