Cathie Wood sells $2.1 million of megacap tech stock | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Cathie Wood just dialed back one of Big Tech’s biggest names again.

The ARK Invest boss shed 3,578 shares of Meta Platforms (META) on March 25, a move worth nearly $2.1 million.

The sale was spread across three of ARK’s major actively managed ETFs, with Meta coming off a lean patch, having dropped 16% of its value in the past month.

It’s important to note that ARK has had a mostly weak start to the year.

For perspective, as per TotalRealReturns as of March 25, Wood’s flagship ARK Innovation ETF (ARKK) was trading in the red, down 9.13% year-to-date, while the S&P 500 was off by more than 5% on a total-return basis as of March 26.

Wood’s cold shoulder on Meta comes as the company faces multiple headwinds, from legal setbacks to capex concerns and layoffs signaling deeper stress.

While the dollar amount may be small by ARK’s standards, the move suggests that Meta is no longer tech’s “it” stock, even if it remains on the radar.

Cathie Wood sells part of a large tech holding as investors watch Ark’s latest strategy shift

Photo by Bloomberg on Getty Images

Cathie Wood’s ARK Invest buys and sells on March 25

Sold 3,578 shares of Meta Platforms (META) for about $2.1 million.
Bought 84,939 shares of Tempus AI (TEM) for nearly $4 million.

Cathie Wood’s investing philosophy centers on big bets and long timelines

Wood’s is unique in bringing what’s often described as venture-capital thinking into public markets.

Fund manager buys and sells

So instead of building a portfolio around the usual suspects, she hunts for businesses tied to major tech shifts that could upend entire sectors.

At ARK Invest, this involves focusing on themes such as AI, robotics, electric vehicles, energy storage, DNA sequencing, and blockchain.

A big part of that trailblazing philosophy is patience.

Wood maintains that disruptive innovation is inherently volatile, which is why ARK usually frames its research around a multi-year, often 5-year horizon.

So short-term swings are unlikely to break the core thesis.

Consequently, her dynamic trading style follows that same logic.

Earnings are typically treated as a reality check, so ARK usually trades on the reaction instead of the event itself.

So if a high-conviction stock drops on a particular sentiment instead of fundamentals, Wood has shown willingness to load up on the dip.

On the flipside, when a particular position becomes too large, ARK tends to trim it, using those impressive gains to fund other names it still believes offer long-term upside.

Meta’s recent setbacks have added pressure to the stock

Meta stock has been under duress of late, and it isn’t a matter of a single solitary headline.

It’s a mix of heavy legal risk, ballooning AI spending, and fresh cost cuts landing at virtually the same time.

Most recently, in California, a jury found Meta and Google are negligent in a landmark social media addiction case, awarding $6 million in damages, with Meta bearing 70% of the total.

In New Mexico, Meta faced a far larger$375 million penalty over child-safety claims, with the next phase going deeper into product changes, including tighter age checks, limits on notifications, and other restrictions.

Apart from the obvious financial hit, this matters a ton for investors because it now starts to challenge the design choices that keep users engaged and ads flowing (Meta’s cash cow).

At the same time, it leaves no room for execution mistakes.

The Facebook parent said 2026 capital expenditures could reach $115 billion to $135 billion, up from $72.22 billion in 2025. At the same time, the company laid off a few hundred employees this week to offset the tremendous costs of rising AI and other operational expenses.

ARKK vs. S&P 500: calendar-year returns (2020–2025)

2020: ARK Innovation ETF (ARKK) +151.89%; S&P 500 (total return) +18.40%.
2021: ARKK -23.39%; S&P 500 +28.71%.
2022: ARKK -66.97%; S&P 500 -18.11%.
2023: ARKK +67.64%; S&P 500 +26.29%.
2024: ARKK +8.40%; S&P 500 +25.02%.
2025: ARKK +35.49%; S&P 500 +17.88%. Source: TotalRealReturns (ARKK); Slickcharts (S&P 500 total returns).

Meta stock looks cheaper historically, but risks linger

Consequently, Meta stock has taken a significant hit recently.

Meta closed at $660.09 on Dec. 31, 2025, and was trading at around $547.54 on Mar. 27, 2026, down 17.1% year-to-date. Especially in recent months, we’ve seen the stock take a monumental beating.

Compared to its history, though, the stock looks relatively cheaper.

As per Seeking Alpha, it’s trading at around 19.67 forward non-GAAP earnings, which is about 13% below its five-year average. Similarly, it’s trading at 11.2 times forward cash flows, 26% behind the sector median.

That perhaps explains why analysts consider it a value play in the Big Tech space, with a consensus average price target of $862.60, implying 57.54% upside.

Tesla remained ARKK’s largest holding as of Mar. 27, 2026.

Tesla: 10.08%.
CRISPR Therapeutics: 5.91%.
Circle Internet Group: 5.60%.
Coinbase Global: 4.88%.
Tempus AI: 4.87%.
Shopify: 4.62%.
Robinhood Markets: 4.27%.
Roku: 4.09%.
Advanced Micro Devices: 3.98%.
Palantir Technologies: 3.60%. Source: Investing.com (ARKK holdings); ARK Invest.

Cathie Wood mostly trimmed Meta over the past four quarters

Wood’s has been a net seller lately in Meta Platforms stock, even though she made a couple of small add-backs along the way.

In Q1 2025, she cut her Meta stake by 10.3%, offloading nearly 47,900 shares. Later in Q2, she followed up with an even bigger move, selling 30.2% of her shares, or roughly 126,000 shares.

More recently, her tone has shifted to modest buying.

For instance, in Q3, Wood raised her position in the Facebook parent by 2.7%, loading up on 7,910 shares. However, in Q4, that change was hardly noticeable, with just 137 shares added.

Even so, ARK still holds roughly 299,000 shares, worth nearly $164 million, or 1.26% of its total holdings, according to Stockcircle.