Artificial intelligence is undoubtedly the phrase of the year, as well as one of the most significant disruptive technologies to come out since the internet.
Excitement over this technology -- fueled by such consumer-facing tools as ChatGPT -- has led to huge market gains and has ballooned the value of numerous tech companies, from Microsoft to Google and Nvidia, to Facebook parent Meta.
And Cathie Wood, CEO and investment lead of Ark Invest, has decided that she really likes (META).
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Wood picked up around $47 million worth of Meta June 12, spread across two of Ark's ETFs. The Ark Innovation ETF acquired 150,459 shares at a little under $41 million, and the Ark Next Generation Internet ETF purchased 24,389 shares at around $6.5 million.
These acquisitions represent the first Meta purchases made by these two ETFs.
Meta, which experienced a 52-week high of $276.57 last week, closed at $271.05 June 12. Its market cap is $694 billion, making it the ninth-largest company in the world.
The company launched its music-generation AI tool June 12, an open-sourced model called MusicGen, which can turn text prompts into song.
Crescat Capital, an investment management firm, said in a recent investor letter that betting on the established tech giants to win AI is not a great move.
"The really big future winners in AI are likely to be the much earlier-stage businesses that are highly successful in applying AI technology in totally new and disruptive ways. The truth is that the investing world at large has absolutely no clue who these companies are going to be yet," the letter reads. "As historical evidence to support this thesis, two of the biggest disrupters from the Internet era were Google and Facebook.
"Both these companies did not even emerge until AFTER the tech bust."
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