Here's the "Magnificent Seven" Stock Cathie Wood Is Piling Into Now

The Motley Fool · 1d ago

Key Points

  • Wood may be buying the dip in Meta Platforms' stock.

  • More cautious investors may want to wait for Meta's quarterly financial report on July 29.

Cathie Wood, the CEO and chief investment officer of Ark Investment Management, has been directing her firm to load up on shares of Meta Platforms (NASDAQ: META), the parent company of Facebook, Instagram, and WhatsApp. Wood's investment management firm purchased 34,080 shares of the technology company in recent weeks, which, at today's share price of around $584, are worth about $18.4 million.

Ark Invest funds are broadly focused on disruptive technologies like artificial intelligence (AI), robotics and automation, blockchain and fintech, space and defense, and DNA sequencing.

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Ark Invest CEO Cathie Wood.

Ark Invest CEO Cathie Wood. Image source: Getty Images.

Meta is one of the so-called "Magnificent Seven" mega-tech stocks that led the broader market higher in recent years. These top tech names, which include Amazon, Alphabet, and Microsoft, have mostly stagnated in 2026 amid investor concerns that the massive borrowing and spending they're undertaking to rapidly build out AI data centers will eventually pay off.

The four major hyperscaler companies are projected to collectively spend $630 billion on AI infrastructure this year alone. Meta's share of that total is about $135 billion, up from $72 billion in 2025.

Meta's share price is down 17% over the past 52 weeks and more than 9% in 2026.

My educated guess is that Wood is buying the dip in Meta shares because she believes investors may currently be overly pessimistic about the company's future.

Meta will announce its second-quarter financial results on Wednesday, July 29. What Meta management says about its AI-related borrowing and spending, as well as its earnings outlook, will likely move the stock.

Wood has always been intensely bullish on technologies she considers disruptive, including cryptocurrencies. More cautious investors should probably wait to see what Meta reports in late July before investing.

Matthew Benjamin has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.