This article first appeared on GuruFocus.
Cathie Wood's ARK Invest made a striking shift inside its big-tech holdings. Meta Platforms Inc. (META, Financials), the social media company behind Facebook, Instagram and WhatsApp, was on the buy side.
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ARK purchased 43,091 Meta shares worth about $27.9 million across its Innovation ETF and Next Generation Internet ETF.
At almost the same time, it sold 84,392 Alphabet shares valued at roughly $27.8 million through the same funds. The numbers make the move hard to dismiss as simple rebalancing.
Meta shares have been gaining momentum after the launch of Muse, its new autonomous personal AI assistant. The company also recently acquired Swedish AI company Stilla.ai as it expands further into AI-powered business agents.
Muse is powered by Meta's Muse Spark 1.3 model and gives investors another product through which to judge the company's heavy spending on artificial intelligence.
Alphabet remains one of the largest players in AI, but ARK's trade suggests Wood currently sees a more compelling setup elsewhere.
For investors, the next question is whether the Meta purchase becomes part of a larger ARK accumulation trend. One trade can be portfolio management. Repeated buying would send a much stronger signal.