Already Up, But "Set to Climb Higher"...Cathie Wood Sells Alphabet and Invests 37 Billion KRW in AI-Beneficiary Meta

Cathie Wood Purchases 43,091 Shares of Meta
Further Bet Despite Rising Share Price Draws Attention
Launch of Personal AI Agent 'Muse' Raises Hopes for Monetization

Cathie Wood, CEO of ARK Invest, affectionately known as "Sister Money Tree" among Korean retail investors active in US equities, is drawing significant market attention by radically reshuffling her big tech portfolio. She has substantially reduced her holdings in Alphabet, Google's parent company, while simultaneously scaling up her stake in Meta Platforms by more than 37 billion won. This is seen as a "strategic switch" reflecting a greater emphasis on Meta’s growth potential, given its rapid progress in commercializing practical artificial intelligence (AI) services and creating new revenue streams.

Cathie Wood, CEO of ARK Invest. Reuters·Yonhap News

Bought Meta, Sold Alphabet... Purchased 43,091 Shares

According to Barchart, a US financial and investment information outlet, on September 14 (local time), ARK Invest recently purchased 43,091 shares of Meta at $27.9 million (about 3.75 billion yen). Of this, 38,304 shares were acquired through the ARK Innovation ETF (ARKK) and 4,787 shares through the ARK Next Generation Internet ETF (ARKW).

Conversely, the firm sold 84,392 shares of Alphabet, amounting to roughly $27.8 million (about 3.74 billion yen). This included the sale of 72,803 shares of Alphabet Class A stock from ARKK and 11,589 shares from ARKW.

Given that the amounts of stocks bought and sold are nearly equivalent, this move is interpreted as reflecting a relative judgment on AI strategy among major technology stocks, rather than a routine portfolio adjustment.

Illustration featuring the Meta logo. Photo by Reuters and Yonhap News

The timing of this purchase is particularly noteworthy. Meta's stock price rose 8.7% over the past five trading days and 12.9% over the most recent three months, climbing to a high level in just about two months. Buying into a stock that had already seen significant gains suggests that Cathie Wood values the long-term growth potential of Meta's AI business more highly than near-term price movements.

'Muse' Launch... AI Monetization Put to the Test

On September 8, Meta launched its personal AI agent "Muse." Muse is designed not only to answer questions as a chatbot, but also to perform a range of tasks such as sending emails, booking travel, and managing schedules and documents on behalf of users.

The service offers a free plan at its core, but also runs a paid subscription model. According to foreign media outlets, subscription options are priced at $20 (about 27,000 won) and $100 (about 134,000 won) per month.

For Meta, the critical question is whether AI can grow into an independent revenue source, beyond simply enhancing the efficiency of its existing advertising business. With its large user base, if AI agents become part of daily life, there is a possibility to expand into new monetization models such as transaction fees in addition to subscription revenue. The market is already evaluating the launch of Muse as a potential turning point in Meta's AI strategy.

However, technological competitiveness does not immediately translate into improved earnings. Muse’s launch was delayed due to concerns over security and reliability, and internal testing revealed issues like exposure of personal information and functional stability. Since AI agents access sensitive personal data and can take real actions, building user trust remains a key challenge.

Revenue Rose, but Costs Surged 55%... AI Investment Weighs on Meta

Meta’s performance reflects both strong growth and rising expenses. Second-quarter revenue was $60.8 billion (about 81.8124 trillion won), up 28% from a year earlier and exceeding the market consensus of $60.21 billion (about 80.9984 trillion won).

In contrast, total costs soared by 55% year-on-year to $42.03 billion (about 56.5555 trillion won). As a result, the operating margin fell from 43% to 31%, and earnings per share (EPS) dropped to $6.18 (about 8,300 won), falling short of the market expectation of $7.10 (about 9,500 won).

With increased investment in AI data centers and computing infrastructure, the short-term cost burden is bound to rise. Therefore, Cathie Wood’s recent buying is seen as a bet on the possibility that large-scale AI investments will drive improvements in ad efficiency and new business revenues over the long term, rather than a bet on Meta's current earnings.

Wall Street’s view is generally positive. Out of 55 analysts covering Meta, 46 have a “strong buy” rating, and 2 have a “buy” rating. The average target price is $754.61 (about 1.01 million won), about 17.1% higher than the current price.

However, a strong buy recommendation does not necessarily mean the investment risk is low. As AI infrastructure investments, labor costs, and data center expenses rise rapidly, how quickly AI services can actually be converted to revenue is regarded as a key variable for Meta’s future valuation.

This content was produced with the assistance of AI translation services.