Ark Invest decides to sell its Meta shares for the first time in a year. This comes amidst falling valuations of Big Tech stocks and a shift towards more stable investments.
Ark Invest's Sale of Meta Shares
Cathie Wood's Ark Invest sold 12,595 shares of Meta on March 17, followed by another 2,160 shares on the following Tuesday. Previously, the fund had been actively buying Meta shares throughout most of 2024. As of December 2024, Ark held over 460,000 Meta shares, according to Bloomberg.
Challenges Facing Big Tech Stocks
Meta's shares turned negative for the year, making it last among the 'Magnificent Seven', which includes Apple, Microsoft, Nvidia, Amazon, Tesla, and Alphabet, to lose 2025 gains. The stress on these companies has grown due to fears over President Donald Trump's tariffs and rapid advancements in artificial intelligence by the Chinese startup DeepSeek. The Bloomberg Magnificent 7 Total Return Index is down 16% this year.
The Fed's Response
Investors are now looking to the Federal Reserve for guidance. The central bank is set to release its economic and interest rate projections. Currently, the probability of rates staying between 4.25% and 4.5% is estimated at 99%, according to the CME Group FedWatch tool. Although some investors are expecting rate cuts, Fed Chair Jerome Powell indicates no rush to reduce them.
These economic instabilities and their effects on tech giant stocks underscore a shift in market sentiment, leading to investments being redirected to safer assets.
