Cathie Wood, head of Ark Investment Management, often buys her favorite tech stocks when she sees a new opportunity.
That’s what she did last week, pouring $27.9 million into Meta Platforms (META) as the company pushes deeper into AI.
Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. So far this year, Wood’s flagship Ark Innovation ETF (ARKK) is up 8.66% as of writing, while the S&P 500 surged 11.85%, Yahoo Finance data shows.
Wood gained a reputation after the Ark Innovation ETF delivered a rosy 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the ETF tumbled more than 60%.
Those swings have weighed on Wood’s long-term gains. As of Sept. 11, her Ark Innovation ETF has delivered a five-year annualized return of -6.89%, while the S&P 500 has an annualized return of 11.42% over the same period, according to data from Morningstar.
Cathie Wood says AI could help support high corporate profits
Wood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She believes these businesses have strong growth potential, but their volatility often causes fluctuations in the Ark’s funds.
Over the decade ended 2025, the Ark Innovation ETF wiped out nearly $5 billion in investor wealth, according to a report by Morningstar’s analyst Amy Arnott. That made it the fourth-biggest wealth destroyer among mutual funds and ETFs in the ranking.
Wood remains optimistic about AI, which she sees as a major driver of productivity, economic growth, and corporate profits in the years ahead.
“Two hundred railroads went bankrupt in the 1800s. I don’t think the AI buildout will end the same way. The railroads were built on a hope and a prayer, while AI revenues seem to be screaming,” Wood said in a recent post on X (the former Twitter).
Related: Cathie Wood sells $28.7 million of megacap tech stock
In another August post on X, Wood said U.S. corporate profits remain unusually strong, with domestic profits before tax at 13.2% of GDP, a level she said is near multi-decade highs.
Some of that strength came from the massive monetary and fiscal stimulus during the pandemic, but Wood believes another factor is helping sustain margins today: Companies are leaning into AI and productivity gains to protect them.
“I think we’re still early in seeing how far that can go,” she said, adding that companies that use AI effectively will “separate themselves from the ones that don’t.”
Not all investors agree with Wood’s optimism. Over the past 12 months through Sept. 10, the Ark Innovation ETF saw roughly $2.3 billion in net outflows, according to data from ETF research firm VettaFi.
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Cathie Wood buys $27.9 million of Meta stock
On Sept. 9, Wood’s Ark funds bought a total of 43,091 shares of Meta Platforms (META), according to Ark’s daily trading information sent to TheStreet. These stocks were worth about $27.9 million.
Meanwhile, Wood on Sept. 9 and 11 sold a total of 86,531 shares of Google parent Alphabet (GOOGL) worth about $28.7 million.
Over the past week, Meta stock gained more than 6% on excitement around its launch of Muse AI assistant, a personal AI agent.
Related: Jim Cramer says big tech stock could double in 3–5 years
The social media giant describes Muse as a “widely available personal AI agent,” designed for everyday users, that can take actions on their behalf and help with daily tasks.
“It can handle tasks, like sending an email or booking travel, and it can take on big audacious goals. Once a person shares a goal with Muse, it helps them develop a personalized plan and coordinate their time and resources, then advances the work on its own,” Meta said in a statement.
Mizuho says Meta’s new Muse AI agent could give Meta shares another boost while pressuring rivals like Google, according to The Fly.
After testing Muse, the analyst was impressed by its polish, range of features, news-feed integration and free access. Mizuho says the product could be the start of a major new cycle for Meta that investors haven’t fully priced in yet.
Wedbush recently raised its price target on Meta Platforms to $650 from $595 while keeping a Neutral rating. The firm called Muse “a key step forward on AI product execution,” but said meaningful financial gains will take time as Meta works to drive paid adoption, according to a research note shared with TheStreet.
Meta stock is down about 1.8% year to date, underperforming the S&P 500 index. The company reported disappointing second-quarter earnings in July, with earnings missing expectations and weaker-than-expected revenue guidance.
The Facebook parent reported Q2 earnings of $6.18 per share, missing the $7.22 expected, while revenue of $60.80 billion topped the $60.17 billion estimate, CNBC reported.
The company also forecast current-quarter revenue of $61 billion to $64 billion, below analysts’ $63.15 billion estimate at the midpoint. Heavy AI spending also pushed free cash flow down to $784 million from $8.55 billion a year earlier.
Meta is not a top-10 holding in the Ark Innovation ETF.
Top 10 holdings in the Ark Innovation ETF by weight as of Sept. 11, 2026:
- Tesla (TSLA): 9.75%
- SpaceX (SPCX): 6.52%
- Circle Internet Group (CRCL): 5.56%
- Tempus AI (TEM): 4.83%
- CRISPR Therapeutics (CRSP): 4.52%
- Coinbase (COIN): 4.47%
- Robinhood (HOOD): 4.18%
- Twist Bioscience (TWST): 3.29%
- 10x Genomics (TXG): 3.21%
- Shopify (SHOP): 3.07%
Other than buying Meta shares, Wood’s latest trades included buying shares of Beam Therapeutics (BEAM), Intellia Therapeutics (NTLA), and CRISPR Therapeutics (CRSP).
She also sold shares of Brera Holdings (SLMT), GeneDx Holdings (WGS), Tempus AI (TEM), 10x Genomics (TXG), Bullish (BLSH), and Twist Bioscience (TWST).
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