© InvestorPlace on your phone screen powered by Shopify .One of the most divisive growth stocks to hit the market in recent years, Shopify (NYSE: SHOP ) stock has certainly had its share of ups and downs. However, one of the standout bulls in SHOP's portfolio is Cathie Wood. Ark Invest is highlighted by Shopify's previous support in wallets.
Wood's faith in Shopify is still on display. Yesterday, Cathie Wood bought more SHOP stock worth about $35 million for her various funds.
Many investors should pay attention to this news. In fact, all of Ark's exchange-traded funds (ETFs) performed poorly last year. However, Cathie Wood's funds have once again outperformed the market this year, posting an impressive rally as investors take a risk-on approach to equities.
Can you continue? Let's take a look at what this particular move will do and what investors should watch out for in SHOP stock's move.
Generally, the best time to buy a stock is when it is going down in price. That seems to be Cathie Wood's view of Shopify after she bought the stock after Thursday's disappointing forecast.
Wood's outlook for Shopify is clearly long-term. If e-commerce is truly a winning industry in this respect, perhaps such a view will pay off. In many ways, I think the acquisition definitely makes sense, especially given that SHOP's stock has underperformed over the past year.
However, Shopify and other high-growth competitors have rebounded nicely from their late-2022 lows in a prolonged "stagflation" environment.
I don't know where the market will go from here, but I like Wood's confidence in SHOP stock. If he's right, Shopify could be in for a big win in 5-10 years.
At the time of publication, Chris MacDonald held no position (directly or indirectly) in the stocks mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's posting guidelines.
Chris MacDonald's love of investing led him to earn an MBA in finance, and he has held various leadership positions in corporate finance and venture capital over the past 15 years. His previous experience as a financial analyst, along with his desire to find undervalued growth opportunities, contributes to his conservative long-term investment outlook.
