Shopify (SHOP) shares plummeted 5.05% in Friday's intraday trading session, as investors reacted to news of a significant stake sale by a prominent investment firm. The sharp decline came after Kessler Investment Group disclosed that it had completely exited its position in the e-commerce giant during the third quarter.

According to an SEC filing released on Thursday, Kessler Investment Group sold all 60,498 shares of its Shopify holdings, a transaction estimated to be worth approximately $7 million. This sale represented a complete divestment of Shopify stock, which had previously accounted for 2.9% of Kessler's assets under management (AUM).

The market's negative reaction to this news suggests that investors are reassessing Shopify's valuation and growth prospects. Despite the company's strong performance over the past year, with its stock price rising 98% and outperforming the S&P 500 by a significant margin, Kessler's decision to fully exit its position may have sparked concerns among other shareholders. The timing of this sale, following such a substantial rally, could be interpreted as a signal that some institutional investors believe Shopify's stock may be overvalued or that its growth trajectory might be slowing.