Key Highlights
- Cathie Wood’s ARK Invest liquidated 203,352 Shopify shares valued at $25.1 million from multiple exchange-traded funds
- The investment firm acquired 28,106 Meta Platforms shares totaling $18.2 million before the company’s upcoming earnings announcement
- Meta’s share price has surged more than 15% during the last 30 days with a Strong Buy consensus from analysts
- Forecasts indicate Meta’s second-quarter revenue could reach $60.22 billion, representing a 27% annual growth rate
- Investment firm Raymond James elevated its Meta price forecast to $850, highlighting the company’s artificial intelligence cloud expansion
On July 20, Cathie Wood’s investment management firm ARK Invest executed significant portfolio adjustments, divesting from e-commerce platform Shopify while simultaneously increasing exposure to Meta Platforms before its upcoming financial disclosure.
The divestment involved 203,352 shares of Shopify distributed across ARK’s flagship fundsāARKK, ARKW, and ARKFāgenerating proceeds of $25.1 million. This transaction represents a continuation of ARK’s strategy to reduce its holdings in the Canadian e-commerce technology provider.
Simultaneously, ARK accumulated 28,106 shares of Meta Platforms valued at $18.2 million using the identical trio of exchange-traded funds. The strategic acquisition arrives mere days before Meta’s scheduled second-quarter 2026 financial results announcement on July 29.
Shares of Meta have appreciated over 15% throughout the previous 30-day period. Market participants have shown enthusiasm for the technology giant’s initiatives to monetize artificial intelligence computing infrastructure and manufacture proprietary semiconductor solutions to lower operational expenses.
Wall Street Analysts Respond to Meta’s Artificial Intelligence Strategy
Meta intends to commence manufacturing of its proprietary AI semiconductor, designated “Iris,” in September through a collaboration with Broadcom. This initiative represents a comprehensive approach to decrease dependency on external hardware suppliers while simultaneously expanding capabilities in AI cloud computing services.
Josh Beck, analyst at Raymond James, increased his price objective for Meta to $850 from the previous $825 target on July 21, maintaining a Strong Buy recommendation. Beck indicated that Meta possesses the capability to monetize its extensive data center infrastructure by providing computing resources to external enterprises, establishing an additional revenue channel from artificial intelligence capital expenditures.
Justin Post from Bank of America maintained a Buy recommendation with an $835 price objective on July 20. His analysis anticipates robust advertising demand will propel second-quarter performance beyond market expectations, projecting revenue of $60.6 billion alongside earnings per share of $7.50.
Post additionally observed that Meta’s workforce reductions implemented in May should enhance profitability margins. He identifies Meta’s AI-powered tools as catalysts for accelerated advertising revenue and emerging income sources.
Analyst Consensus and Q2 Earnings Projections for Meta
Brian Pitz, analyst at BMO Capital, maintained a Market Perform designation with a $720 valuation target. He acknowledged that Meta’s recent artificial intelligence product releases and cloud infrastructure strategies have mitigated certain investor apprehensions, though he seeks additional transparency regarding investment returns.
Pitz also identified possible regulatory challenges stemming from government-mandated age-verification requirements that could impact Meta’s social media platforms.
Among 40 Wall Street research analysts covering Meta, the stock commands a Strong Buy consensus rating, derived from 35 Buy recommendations and five Hold ratings published during the preceding three-month period. The consensus price target of $805.98 implies approximately 25% appreciation potential from present trading levels.
Analyst projections collectively anticipate Meta will deliver EPS of $7.19 for the second quarter, representing a 0.8% increase compared to the corresponding quarter last year, accompanied by revenue of $60.22 billion, marking a nearly 27% year-over-year expansion.
In addition to the Meta and Shopify portfolio adjustments, ARK also acquired $21.2 million in aerospace company SPCX while liquidating positions in Iridium Communications, Baidu, Advanced Micro Devices, and Robinhood Markets.
Meta’s second-quarter 2026 earnings release scheduled for July 29 will provide crucial insights into the company’s financial performance and strategic execution.
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