Cathie Wood's ARK Loads Up 38,110 Meta Shares Across 3 ETFs Despite Mounting AI Spending Concerns
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Meta accounts for 2.27% of ARKK’s portfolio, 5.47% of ARKW’s and 4.69% of ARKF’s, according to ARK Invest’s official holdings data.
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TD Cowen expects Meta to issue equity, debt, or both to finance its AI infrastructure expansion over the next several years.
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Meta’s recent selloff has erased much of its September gains, leaving shares over 17% below their Sept. 24 peak of $777.59.
Cathie Wood’s ARK Invest loaded up on Meta Platforms (META) shares on Thursday, purchasing 38,110 shares across three exchange-traded funds (ETFs) as the Facebook parent’s stock came under pressure over its artificial intelligence (AI) spending plans.
According to ARK’s daily trade notification, the firm purchased 28,069 shares through its ARK Innovation ETF (ARKK), 7,018 shares through the ARK Next Generation Internet ETF (ARKW) and 3,023 shares through the ARK Fintech Innovation ETF (ARKF).
As of Thursday, Meta stock accounted for 2.27% of ARKK’s portfolio, 5.47% of ARKW’s and 4.69% of ARKF’s, according to ARK Invest’s official holdings data.
The purchases coincided with a nearly 7% decline in Meta shares on Thursday after the company reported its third quarter (Q3) earnings, when the stock closed at $648.85, as investors weighed the company’s expanding AI investments and plans to raise capital through a new class of shares.
Meta’s AI Spending Raises Questions Despite Q3 Beat
Meta on Wednesday raised the lower end of its 2026 capital expenditure guidance by $5 billion, bringing the range to $135 billion to $145 billion, including principal payments on finance leases.
The company also announced plans to establish publicly listed, non-voting Class C shares in January 2027, providing additional flexibility to fund investments, acquisitions and employee compensation.
Concerns over Meta’s AI spending also extended to credit markets, with the cost of insuring its debt against default hitting a record high on Thursday. Meta’s five-year credit default swaps rose to a record 114.79 basis points.
However, Shay Boloor, chief market strategist at Futurum Equities, said the widening spreads could reflect banks hedging their exposure to Meta’s AI financing rather than a deterioration in the company’s creditworthiness.
Analysts Flag Spending And Funding Uncertainty
Despite Meta’s strong advertising growth and early Muse adoption, analysts raised concerns about the scale of its AI investments and how the company would finance future expansion.
Wedbush said Meta provided no additional visibility into its 2027 operating expenses and capital expenditures. According to the note cited by TheFly, the firm noted that Muse’s computing requirements remain high, while global scaling and monetization are still in their early stages.
TD Cowen expects Meta to issue equity, debt or both to finance its AI infrastructure expansion over the next several years. Wells Fargo also flagged uncertainty surrounding the timing and size of a potential capital raise, as well as the company’s 2027 spending outlook.
Piper Sandler raised its 2027 operating expense and capital expenditure estimates to reflect increased AI investment, while Mizuho warned that Meta shares could struggle ahead of a potential equity raise in early 2027.
Retail Investors’ Sentiment Around META Stock
Despite the sharp correction in META shares in the previous session, retail investors’ sentiment around the stock remained ‘bullish’ amid high message volume.
On a year-to-date basis, Meta stock has erased all gains to trade marginally in the red. By comparison, the State Street Communication Services Select Sector SPDR ETF (XLC), which holds the stock, has fallen over 8%, while the Roundhill Magnificent Seven ETF (MAGS) has risen nearly 8% during this period.
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Harshita Tyagi has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
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