Cathie Wood Goes Bargain Hunting: She Just Loaded Up on 2 Cheap Magnificent Seven Stocks and an AI Player That's Dropped 60% From Its Peak. | The Motley Fool

"Why do investors keep a close eye on Cathie Wood's moves? Because the founder and chief of Ark Invest knows how to spot innovators and the winners of tomorrow. Wood's flagship fund, Ark Innovation ETF, has that name for a good reason, as it includes companies that focus on game-changing technologies and making the world a more efficient and high-performance place down the road."

"But Wood won't pay ridiculous prices for these players, and instead, looks for opportunities to scoop them up for a bargain -- or at least at reasonable levels considering their long-term prospects. In recent days, Wood went bargain hunting, loading up on two cheap Magnificent Seven stocks and an artificial intelligence (AI) player that's dropped 60% from its peak earlier this year. Let's check out these buys, each completed on Nov. 25."

"Wood bought 23,769 shares of Meta Platforms , making it the 25th largest holding out of a total of 48 in the Ark Innovation ETF. This social media powerhouse and top AI stock is a member of the Magnificent Seven tech stocks that have driven overall stock market gains in recent years. And right now, Meta is the cheapest of the lot, trading for 25x forward earnings estimates."

Cathie Wood added several stocks to the Ark Innovation ETF with an emphasis on discounted high-growth names. The ETF concentrates on companies developing game-changing technologies and improving long-term efficiency and performance. Recent Nov. 25 purchases included a large Meta Platforms stake, noted as a Magnificent Seven member and major AI investor trading around 25x forward earnings. The buys also encompassed another Magnificent Seven stock and an AI company that has declined about 60% from its peak. The approach seeks reasonable entry prices for firms with durable disruptive potential over the long term.

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