This article first appeared on GuruFocus.
Cathie Wood’s ARK Invest bought heavily into Meta Platforms (NASDAQ:META) after the stock’s post-earnings selloff, while reducing exposure to Palantir (NASDAQ:PLTR) and Roblox (RBLX).
ARK funds purchased 38,110 Meta shares worth about $24.7 million on Thursday, Oct. 22, after the stock plunged roughly 7% and erased its gains for the year.
At the same time, Wood sold 7,936 Palantir shares worth about $1.55 million and unloaded 33,793 Roblox shares valued at roughly $1.8 million.
The moves come as the three stocks sit in very different places.
Meta’s selloff followed a quarter in which revenue jumped 26% year over year to $64.6 billion, helped by stronger advertising and engagement. But investors focused heavily on rising AI spending after the company lifted the lower end of its 2026 capital-expenditure outlook to $135 billion, leaving the range at $135 billion to $145 billion.
That spending pressure has become harder to ignore, particularly with Meta’s free cash flow turning negative for the first time since 2012, according to TipRanks.
Palantir, meanwhile, remains one of the market’s strongest AI winners.
Second-quarter revenue increased 93% to $1.94 billion, while U.S. commercial revenue surged 149%. The company also raised its full-year revenue outlook to roughly $8.15 billion to $8.158 billion.
But after a roughly 1,111% three-year rally, expectations are already extraordinarily high.
Roblox presents a very different setup.
The stock remains down about 58% over the past year, with investors still questioning profitability, growth and monetization. Second-quarter bookings increased just 8%, while the company guided for a 14% to 18% decline in Q3 bookings.
Investor Takeaway
I think the interesting part of ARK’s move is the contrast in valuation and sentiment.
Meta was bought immediately after investors punished the stock for rising AI costs, while Palantir was trimmed after one of the strongest multiyear rallies in the market.
That does not necessarily mean Wood has turned bearish on Palantir or Roblox.
But the size difference is notable: ARK bought nearly $25 million of Meta while selling only about $3.3 million combined across the other two names.
That makes the trade look more like a meaningful buy-the-dip move in Meta than a wholesale exit elsewhere.
For investors, the key things to watch are Meta’s AI spending and monetization, Palantir’s ability to keep beating elevated expectations, and whether Roblox can stabilize bookings and improve monetization.
Cathie Wood appears willing to lean into Meta while much of the market is focused on the cost of its AI ambitions.
