Wood Sells Amazon, Alphabet, Buys Meta Amid AI Concerns

Cathie Wood's ARK Innovation ETF has made significant changes to its Magnificent Seven stock holdings. Over the past week, Wood sold shares of two key stocks: Amazon and Alphabet. In a move that may seem counterintuitive, she added shares of Meta Platforms.

Wood dumped all remaining class A shares of GOOGL on September 15, following a sale of 1,784 shares on September 11. She also sold 11.7% of her GOOG C shares on September 14, worth around $13 million. As of September 16, the ARKK ETF held about 288,000 shares of GOOG, an approximately $98 million position representing 1.5% of the portfolio.

The ETF also sold off a sizable chunk of its Amazon stock, dropping 20,000 shares or about 3.2% of its position, which amounted to a $5.1 million stake. However, Wood still holds almost 614,000 shares valued at approximately $152 million. Meta Platforms stock was a big purchase recently, with Wood buying roughly 38,000 shares on September 9 for a stake valued at almost $25 million.

The moves by Wood may reveal trends to watch in the market, particularly as it relates to AI spending and potential earnings growth. However, the goals of institutional investors like Wood are vastly different from those of individual retail investors seeking long-term wealth.