Cathie Wood's ARK Invest Scoops Up Shopify Shares Amid Post-Earnings Sell-Off, Jefferies Wants Investors To Buy On 'Weakness'

• Cathie Wood’s ARK Invest bought 88,013 shares for a potential $12.5 million. 
• Shopify reported 32% Q3 revenue growth but missed revenue and GMV estimates. 
• Jefferies maintained its ‘Buy’ rating and $175 price target on Shopify.

Cathie Wood’s ARK Invest scooped up 88,013 Shopify Inc. (SHOP) shares after an 8.7% post-earnings plunge, betting on the dip despite third-quarter (Q3) revenue and Gross Merchandise Value (GMV) misses. 

Shopify stock traded over 3% lower overnight Tuesday, after an 8.7% slump in the regular session. 

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ARK Invest Loads Up On Shopify After Earnings Pullback 

Shopify kicked off the week with its Q3 results, posting total revenue of $3.74 billion, up 32% year-on-year and generating a $816 million in free cash flow. However, the market punished the stock after revenue missed the $3.75 billion estimate, according to Fiscal.ai data and  GMV of $119.1 billion was also slightly below consensus estimates of $120.1 billion. 

Cathie Wood’s ARK Invest took advantage of Shopify’s stock decline by buying shares through three of its main funds. The ARK Innovation ETF (ARKK) bought 63,238 shares, the ARK Next Generation Internet ETF (ARKW) added 17,129 shares, and the ARK Fintech Innovation ETF (ARKF) purchased another 7,646 shares. 

In total, purchases across these three funds brought ARK's single-day acquisition to 88,013 shares of Shopify, potentially worth $12.5 million. Shopify is now among the top 10 holdings of ARKK, constituting 3.15%. 

Jefferies Urges Investors To Buy Shopify Shares On Weakness 

Jefferies also shared Wood’s positive view on Shopify. The firm kept its ‘Buy’ rating and $175 price target, saying GMV grew 30% after adjusting for currency changes, despite revenue falling slightly short of expectations. Jefferies added that Shopify’s growing role in AI-powered shopping tools and virtual assistants could support its long-term growth. 

With operating leverage driving strong cash flows and the company seeing continued low-thirties percentage growth, Jefferies called upon investors to "take advantage of the weakness.”

SHOP Stock: Retail View 

On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’. The stock recorded a 2,783% surge in message volume over the past week. 

A user said, “If you are bearish Shopify, you clearly haven’t done e-commerce

It’s honestly the best game in town other than Amazon. Done are the days of choosing Magento or bigcommerce for most retailers .”

Another user said, “$SHOP is building the commerce infrastructure that competing AI agents can use to complete purchases so it doesn’t need to own the shopping interface itself.”

SHOP  stock has declined 11% year-to-date.  

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