Twist Bioscience Corp (TWST) saw its stock plummet by 5.06% during Tuesday's trading session, despite a significant purchase by Cathie Wood's Ark Invest. The sharp decline comes in the wake of a new risk disclosure by the company, highlighting potential challenges in scaling its manufacturing capabilities.

According to a recent filing, Twist Bioscience has identified a significant risk in its ability to scale operations. This new disclosure falls under the Manufacturing category and suggests that the company may face hurdles in meeting future demand, potentially impacting its financial health. The timing of this revelation appears to have outweighed positive sentiment from Ark Invest's show of confidence in the company.

Interestingly, Cathie Wood's Ark Invest made substantial purchases of Twist Bioscience shares across multiple ETFs. The firm acquired 52,051 shares through its ARK Genomic Revolution ETF (ARKG) and a whopping 340,895 shares via the ARK Innovation ETF (ARKK). However, this vote of confidence from a prominent investor was not enough to prevent the stock's decline, underscoring the market's concerns about the newly disclosed manufacturing challenges.