ARK Invest Exits $25M Shopify (SHOP) Position, Loads Up on Meta (META) Stock Before Earnings

Key Takeaways

• Cathie Wood’s ARK Invest divested 203,352 Shopify shares valued at $25.1 million from several ETFs
• The firm acquired 28,106 Meta Platforms shares for $18.2 million before the company’s July 29 quarterly report
• Meta shares have surged more than 15% in the last 30 days with a Strong Buy rating from analysts
• Analyst consensus forecasts Meta’s Q2 revenue at $60.22 billion, representing nearly 27% growth from last year
• Raymond James boosted Meta’s price target to $850, highlighting its expansion into AI cloud infrastructure

In a significant portfolio adjustment on July 20, Cathie Wood’s ARK Invest executed two substantial transactions: offloading a sizable Shopify stake while accumulating Meta Platforms shares just ahead of the social media giant’s upcoming quarterly disclosure.

The investment firm divested 203,352 shares of Shopify distributed across ARKK, ARKW, and ARKF portfolios, generating proceeds of $25.1 million. This transaction marks a continuation of ARK’s recent Shopify divestment pattern, indicating a strategic reduction in its e-commerce holdings.

Simultaneously, ARK accumulated 28,106 shares of Meta Platforms valued at $18.2 million through its three flagship ETFs. This strategic purchase arrives mere days before Meta’s anticipated second-quarter 2026 financial results disclosure on July 29.

Meta Platforms, Inc., META

Meta’s stock price has experienced a robust rally, appreciating over 15% during the past month. Market participants have shown enthusiasm for the company’s strategic initiatives around leasing AI computational infrastructure to external enterprises and manufacturing proprietary semiconductors to optimize operational expenses.

Analysts Highlight Meta’s Artificial Intelligence Strategy

Meta is preparing to commence production of its proprietary AI processor, designated “Iris,” scheduled for September launch through a collaboration with Broadcom. This initiative represents a strategic effort to minimize dependence on third-party hardware providers while expanding into AI infrastructure services.

On July 21, Raymond James analyst Josh Beck elevated his Meta price objective to $850 from $825, maintaining a Strong Buy recommendation. Beck highlighted Meta’s potential to monetize its extensive data center infrastructure by offering computational capacity to external organizations, establishing an additional revenue channel from its AI capital expenditures.

Bank of America analyst Justin Post reaffirmed a Buy rating with an $835 target on July 20. He anticipates robust advertising demand will propel Q2 performance beyond market expectations, projecting revenue of $60.6 billion alongside earnings per share of $7.50.

Post additionally observed that Meta’s May workforce reductions could enhance profitability metrics. He identifies Meta’s AI capabilities as catalysts for future advertising revenue growth and emerging income streams.

Wall Street’s Q2 Expectations for Meta

BMO Capital analyst Brian Pitz maintained a Market Perform stance with a $720 price objective. He acknowledged that Meta’s recent AI product launches and cloud infrastructure plans have alleviated certain investor concerns, though he seeks greater transparency regarding investment return trajectories.

Pitz also identified potential regulatory challenges from government-mandated age-verification requirements that could impact Meta’s platform operations.

Among 40 Wall Street analysts covering Meta, the stock commands a Strong Buy consensus, comprising 35 Buy ratings and five Hold recommendations issued over the past three months. The average price target of $805.98 implies approximately 25% appreciation potential from present trading levels.

The analyst community broadly anticipates Meta will deliver Q2 EPS of $7.19, reflecting 0.8% growth versus the prior-year quarter, accompanied by revenue of $60.22 billion, marking nearly 27% year-over-year expansion.

In addition to the Meta and Shopify transactions, ARK also acquired $21.2 million in space industry company SPCX while divesting holdings in Iridium Communications, Baidu, Advanced Micro Devices, and Robinhood Markets.

Meta’s Q2 2026 earnings release scheduled for July 29 will provide critical insights into the stock’s forward trajectory.

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