Cathie Wood Rotates $27.9 Million Into Meta’s AI Push

Meta Platforms shares were already riding a fresh artificial-intelligence wave when Cathie Wood’s ARK Investment Management added $27.9 million to the trade.

ARK funds bought 43,091 Meta shares on September 9 through the ARK Innovation ETF and ARK Next Generation Internet ETF, according to the firm’s daily trading disclosures. The purchase arrived as Meta stock climbed toward a two-month high after the company introduced Muse, a personal AI agent designed to handle tasks rather than simply answer questions.

Muse is built around Meta’s new Muse Secure VM, a dedicated virtual computer that can browse the web, work across connected applications and seek approval before sensitive actions such as sending an email or making a purchase. Meta said the product is rolling out in the United States on iOS, Android and muse.ai, with AI glasses planned for a later release.

That product push gives Wood a more specific reason to favor Meta over Alphabet, rather than merely increasing exposure to the same broad technology theme. ARK sold 84,392 Alphabet shares across September 9 and September 11 for roughly $28.7 million, according to trading data reviewed by TheStreet. The transactions amount to a near one-for-one rotation out of Google’s parent and into Meta.

The wager is not without friction. Meta’s second-quarter earnings missed analysts’ expectations on profit, while heavy investment in AI infrastructure helped push free cash flow down sharply from a year earlier. The company also issued revenue guidance that landed below the midpoint of Wall Street forecasts.

That spending is the central question for investors. Meta is trying to turn expensive models, data centers and new consumer assistants into stronger advertising, subscription and commerce economics. Muse may eventually expand the company’s reach beyond feeds and messaging, but the financial payoff will depend on adoption and monetization.

For now, Wood appears willing to buy the product cycle before the income statement fully reflects it. Meta is not among ARKK’s 10 largest holdings, making the purchase more a targeted expression of conviction than a wholesale reshaping of the fund.