On Tuesday, Cathie Wood-led Ark Invest purchased shares of Meta Platforms Inc. (NASDAQ:META) and Cerebras Systems Inc. (NASDAQ:CBRS), while trimming its position in Alibaba Group Holding Ltd. (NYSE:BABA).
The Meta Platforms Trade
ARK purchased 2,609 Meta shares through ARK Blockchain & Fintech Innovation ETF (BATS:ARKF) and another 20,125 shares through the ARK Next Generation Internet ETF (BATS:ARKW). The combined purchase totaled 22,734 shares. The transaction was valued at $17.3 million based on the stock’s closing price of $762.50.
CEO Mark Zuckerberg defended the scale of Meta’s AI spending, recounting discussions with Chief AI Officer Alexandr Wang about committing $100 billion to $200 billion to its ambitions.
He said, “We’re going to write this check for, like, I don’t know, like $100 billion, $200 billion," before asking, "Alex, are you sure this is going to work?"
Zuckerberg highlighted Meta’s Prometheus computing cluster in Ohio, which is scaling beyond one gigawatt, and its planned Hyperion cluster in Louisiana, expected to scale to five gigawatts.
He estimated that a one-gigawatt cluster could cost approximately $15 billion annually to operate, with upfront capital costs of $50 billion to $60 billion. Zuckerberg said Meta’s profitable core business and access to credit could support the investment, while subscriptions and AI tools for small businesses offered potential revenue streams.
The Cerebras Trade
Ark bought 67,362 Cerebras shares through ARKW on Tuesday. The transaction was valued at nearly $10 million as the stock closed at $149.08 on Tuesday.
Cerebras faced an upcoming release of up to 19.4 million shares from IPO lock-up restrictions on Wednesday, Oct. 14. The release would make those shares eligible for sale, potentially adding selling pressure.
The stock had closed at a record low of $146.62 on Monday, down approximately 58% from its $350 opening price in May and about 21% below its $185 IPO price.
Questions also persisted about Cerebras’ relationship with OpenAI following a SemiAnalysis report that OpenAI’s new ultrafast offering would run on Nvidia GPUs. Sam Altman subsequently reaffirmed the partnership, while Citi maintained its 2026–2028 revenue outlook for Cerebras.
Cerebras has a multiyear agreement worth more than $20 billion to provide OpenAI with 750 megawatts of computing capacity.
The Alibaba Trade
Ark sold 3,465 Alibaba shares through ARKF on Tuesday. On Tuesday, Alibaba stock in New York closed at $110.85 making the transaction worth $384,095.
Alibaba had rallied alongside other U.S.-listed Chinese stocks on Friday, amid speculation that Chinese authorities had intervened to limit selling in mainland markets.
Bloomberg reported that traders cited unverified guidance restricting sell orders and possible purchases by state-backed investors. The precise trigger for the market reversal remained unclear, and the reported restrictions had not been confirmed.
Lotus Asset Management Chief Investment Officer Hao Hong said state-backed buying likely emerged after the Shanghai Composite slipped below 3,800, a level investors viewed as a near-term support point.
Other Key Trades
- Toast Inc. (TOST): ARKF and ARKW sold a combined 406,020 shares.
- DraftKings Inc. (DKNG): ARKF and ARKW sold a combined 6,432 shares.
- Beam Therapeutics Inc. (BEAM): Ark purchased 49,090 shares through ARKG.
- Nurix Therapeutics Inc. (NRIX): Ark bought 37,113 shares through ARKG.
- Scribe Therapeutics Inc. (SCTX): Ark purchased 45,160 shares through ARKG.
- Freenome Inc. (FRNM): Ark bought 84,652 shares through ARKG.
- Personalis Inc. (PSNL): Ark sold 901,647 shares through ARKG.
- CareDx Inc. (CDNA): Ark sold 43,521 shares through ARKG.
- Teradyne Inc. (TER): ARKQ and ARKX sold a combined 3,797 shares.
Benzinga Edge Stock Rankings indicate Meta stock has a Momentum score in the 73rd percentile and a Value score in the 46th percentile.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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