Why Cathie Wood Is Selling Google and Buying More Meta Platforms Stock

Meta Platforms (META) stock options imply a range of $418 to $993 per share over the next year. The company's ad revenue grew 27% in Q2 2026, but capital expenditures surged to $31.1 billion, with free cash flow dropping to $784 million. Management expects $130B-$145B in spending for 2026. The stock is down 15.6% over 12 months, underperforming the S&P 500.

Korean tech giants Samsung and Naver invested heavily in AI infrastructure, with Samsung leading a €3B round in Mistral and Naver-backed Positron AI raising $875M. Panmnesia and Meta proposed CXL-based AI datacenter designs in Nature. MyRealTrip acquired Creatrip to expand its travel platform. Other notable funding rounds include Aidin Robotics, Kitronyx, Credos Partners, and WithDoctors.

Meta agreed to a $17.1B settlement with 47 states over claims that Facebook and Instagram harmed teens' mental health. The deal includes $12.1B in payments and usage limits for young users, but preserves Meta's core business model. Meta's shares rose 13.4% post-announcement, with analysts seeing reduced overhang. Critics argue the settlement doesn't address fundamental issues like data collection and executive control.

U.S. stock indices fell on Friday, with the S&P 500 down 2.64%, Nasdaq 100 down 4.77%, and Dow Jones down 1.35%, due to strong jobs data raising rate hike bets. Meta dropped on reports of a potential stock sale. TSLA fell 5% after postponing its Roadster demo. GME's CEO is pursuing eBay. META may raise equity for AI. BA will start 737 Max production. MSTR dropped with Bitcoin. GOOGL secured a cloud deal with SpaceX.

Meta Platforms (META) shares rose in early trading following the launch of its Muse AI agent. Oppenheimer remains skeptical, reiterating a 'Perform' rating, while JPMorgan upgraded META to 'Overweight' with a $820 price target. META stock gained 0.5% in pre-market trade. Analysts debate Muse's potential and challenges, including consumer adoption and competition.

Meta agreed to a $17.1B settlement with 47 states over claims of harming youth mental health, but the deal does not restrict data collection from young users. Meta's business model relies on targeted ads, incentivizing prolonged user engagement. Critics argue the settlement misses an opportunity to change Meta's incentive structure, as past settlements have not stopped similar practices.