Cathie Wood Is Still Buying Meta Platforms Stock. Should You?

Meta Platforms (META) has underperformed the broader market this year, a rare sight for a “Magnificent 7” stock. It was only a matter of time before Cathie Wood added the much-hyped “undervalued” tech stock to her portfolio. During the last week, she added 33,837 Meta shares worth over $21 million. Wood believes the company’s short-term issues present a great risk-reward opportunity, considering its long-term artificial intelligence (AI) aspirations and investments.

Meta was one of the first major companies to see a measurable return on its AI investments through improved advertising performance. However, continued investments have brought back bad memories of the past, with some comparing ongoing capital expenditures to the company’s previous failed investments, like the metaverse.