Thought It Was Overpriced... 'Donnamu Unni' Bought More of MS and Meta

Cathie Wood, CEO of ARK Investment, famously known as the 'Money Tree Sister,' has started accumulating additional shares of Microsoft (MS) and Meta. This move is analyzed as a bet based on the expectation that the upward trend in AI-related stocks this year may continue into next year.

According to Bloomberg on the 12th (local time), ARK's flagship fund, the ARK Next Generation Internet Exchange-Traded Fund (ETF), purchased 8,810 shares of MS stock the previous day. This is the first purchase after a nine-month hiatus since March 20. Around the same time, the ETF also bought 10,212 shares of Meta, the parent company of Facebook.

This ETF has held 51,000 shares of MS and 285,000 shares of Meta, with ownership stakes of about 1% each. Bloomberg reported that "this shows Wood's continued confidence in AI-related stocks."

Cathie Wood, CEO of Ark Investment.
Photo by Reuters Yonhap News

Following Wood's move, MS shares closed at $374.38, up 0.83% from the previous session on the New York Stock Exchange. This represents a surge of more than 56% since the beginning of the year. Meta's stock price has also risen since October last year on expectations of strengthening its AI business, jumping about 160% from early this year to the present.

Wood, a leading figure in tech stock investment, has recently increased her investments in AI-related stocks. In an interview with a British media outlet last month, she stated, "All the stocks in my portfolio are practically related to AI."

However, she suffered a hit to her reputation by selling Nvidia, the representative beneficiary stock of AI this year, at a perfect timing. At the end of May, just before Nvidia raised its AI revenue outlook, she sold a significant portion of her Nvidia shares, claiming that "Nvidia's stock price was overvalued." Afterward, Nvidia's stock rallied strongly, supported by the upward revision of its AI revenue forecast. In September, she said, "Nvidia has become too obvious an AI-related stock," and pointed to UiPath and Twilio as emerging beneficiaries in the AI field.

This year, AI stocks rallied, driven by heightened market expectations and upward revisions of earnings forecasts. The S&P 500, the representative index of the U.S. stock market, has risen nearly 20% this year, with about three-quarters of this increase led by the Big Tech seven companies including MS, Nvidia, Apple, Meta, Amazon, Alphabet (Google), and Tesla.

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