Ark Invest's Cathie Wood doubled down on e-commerce play Shopify Thursday amid a sharp sell-off on the company's disappointing financial guidance. Wood snapped up 609,763 shares of Shopify for her flagship ARK Innovation ETF Thursday, as well as 98,351 shares for ARK Next Generation Internet ETF and another 68,721shares for Ark Fintech Innovation ETF , according to Ark Invest's daily trade updates. Those purchases, combined, were worth nearly $35 million, based on Shopify's Thursday closing price of $44.91. The e-commerce stock plunged 15.9% Thursday after it issued weaker-than-expected revenue guidance for the current quarter. Ottawa-Canada-based Shopify experienced massive growth in 2020 as the company served small businesses by allowing them to quickly move operations online during the forced shutdowns of the Covid pandemic. The stock soared 185% in 2020 and 21% in 2021. However, as the pandemic boost started to fade, Shopify began to contend with concerns that it couldn't sustain the high-flying growth. Shopify said in July last year it would lay off roughly 1,000 workers, or around 10% of its global workforce. The stock plunged nearly 75% in 2022. Ark Invest is particularly bullish on social commerce, where Shopify enables individual consumers to purchase goods straight from social media platforms. Such social commerce has grown almost four times faster than traditional e-commerce n the past three years, Wood said in a recent letter to investors. "Social commerce is taking significant share from traditional e-commerce and off-line retail sales," Wood said.
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