Cathie Wood's Ark Invest snapped up $35 million of Shopify stock as the e-commerce company suffered one of its worst-ever trading days

• Cathie Wood's Ark Invest increased its Shopify holdings as the company's shares plummeted Thursday.
• The ecommerce platform posted weak guidance, causing the stock to nosedive 17% in one of its worst sessions.

Cathie Wood's Ark Invest purchased $35 million worth of Shopify as the company endured one of its worst trading days in history.

The famed money manager snapped up 609,763 Shopify shares on Thursday for its ARK Innovation (ARKK) exchange-traded fund. Shopify plunged 17% in Thursday morning trading after posting weaker-than-anticipated revenue growth for the first quarter of 2023, along with declining to give an annual outlook to investors.

It's largest daily stock decline was 17.6% in March of 2020. Shares of Shopify were down 3.79% at $43.20 Friday afternoon.

"We believe that the revenue guide implies that Q1 gross merchandise volume will be weaker than expected," Jefferies analyst Samad Samana said in a note to clients. "Management did note the uncertain macro [economy] was factored into the outlook."

Shopify is the eighth largest holding in Ark's flagship fund, with the ETF holding $391.3 million of the stock.

Ark Invest took the stock price's decline as a chance to buy Shopify at a discount, a strategy Wood's firm has implemented many times before. When Coinbase was down 84% year-to-date, Ark scooped up $3.2 million worth of the crypto exchange last December.

ARKK just logged its best performing month ever, notching 28% gains for investors in January.

"We are the new Nasdaq," Wood said in an interview with Bloomberg, celebrating the fund's record.

As a selling point to investors for her innovation fund, the Ark Invest CEO said: "Look through [the Nasdaq] now, you will not find the kind of disruptive innovation, it certainly doesn't dominate those indexes."

ARKK is was down by about 2.76% on Friday afternoon, trading at $40.86.