Cathie Wood’s latest move is alarming for big stocks

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Cathie Wood’s recent move just sent a quiet alarm through mega-cap tech.

ARK filings filed for December 4 show major cuts to Meta Platforms (META) and Tesla (TSLA) stocks, two “Magnificent 7” stalwarts that played a key role in 2025’s relentless AI-powered rally.

For perspective, Meta stock is up 13% year to date at the time of writing, and Tesla stock is up 12.5% year to date (37% in the past six months).

For those living under a rock, here’s the Mag 7 roll call with their latest market caps:

Those weren’t one-off trims, either, as they extended a weeklong pattern of Wood steadily offloading the market’s biggest winners.

Surprisingly, the ARK boss’s biggest buy of the day was Trade Desk, an obvious rotation away from over-owned giants and toward mid-cap names heading into 2026.

Wood’s bets are unmissable for investors, and her selling of Big Tech plays raises real questions about how much upside is still left in the AI trade.

Cathie Wood cut major holdings and shifted fresh capital into Trade Desk, filings show.Photo by Bloomberg on Getty Images

Wood’s sharpest cuts on December 4 hit two of the biggest Mag 7 names in Meta and Tesla. ARK sold off 14,211 Meta shares ($9.1 million) while trimming 7,478 Tesla shares ($3.3 million), adding to a multi-day pullback from mega-cap tech.

As of Q3 20205, Tesla accounted for roughly 10.5% of ARK’s combined portfolio, being a top ARK position for years, with Wood at one point even telling CNBC it was the “biggest AI opportunity in the world.”

Fund manager buys and sells

Wood is apparently taking profits in the year’s biggest winners as she reallocates stocks she feels are better positioned for 2026.

At a conference in October this year, Wood was blunt in telling CNBC, “I do not believe AI is in a bubble.”

Nevertheless, she does feel that Big Tech expectations have gotten overheated and that a 2024-2025 “reality check” was inevitable. To her, it’s more of a reset than a rupture, as she believes the real enterprise AI boom will unfold over the years.

Moreover, she unwound her position in Iridium Communications (IRDM), a popular space stock, selling 231,395 shares ($4 million) across ARKK, ARKQ, and ARKX.

Wood wasn’t the only fund manager pulling back on the Mag 7.

We saw a wave of billionaire investors and hedge funds also use Q3 to dial down their exposure to Big Tech following a relentless AI-driven run.

Here were the biggest moves:

Bridgewater Associates (Ray Dalio’s fund): Slashed Nvidia by roughly two-thirds and halved Google-parent Alphabet, while also trimming Amazon and Broadcom.
Tiger Global (Chase Coleman): Cut Meta stock by 62.6% while exiting multiple high-fliers, redeploying capital into streaming and fintech, Reuters reported.
Coatue Management (Philippe Laffont): Trimmed Nvidia, Tesla, Amazon, and Arm, while boosting Microsoft and Meta, suggesting cautiousness over AI-exposed names.
Berkshire Hathaway (Warren Buffett): Took profits in Apple, while adding a new $4.3 billion Alphabet stake, pointing to better relative value in Google.
Scion Asset Management (Michael Burry): Reduced Nvidia, warned of an “AI bubble,” and ended up closing his fund to speak freely about the growing excess.

Wood’s is trimming Big Tech but pointing her firepower somewhere else.

On the buying side, she’s looking to rotate aggressively into mid-cap growth names, spearheaded by a standout move into The Trade Desk (TTD).

ARK scooped up 204,354 TTD shares ($7.9 million) across ARKK and ARKW, one of its biggest single-day pushes into ad-tech.

The company just made another strong quarterly showing, posting sales of $739.43 million (+17.7% year over year), beating estimates by almost $20 million. Also, its Q3 non-GAAP EPS of 45 cents beat estimates by a cent.

Perhaps the brightest spot was that customer retention hovered near 95%, highlighting its ability to capture a larger share of digital ads as budgets shift toward more specific targeting.

Also, the rotation didn’t stop there.

ARK has been looking to steadily redeploy capital into a mix of tech, crypto, and next-gen plays, which include:

ARK 21Shares Bitcoin ETF (ARKB): +52,200 shares
WeRide: +42,377 shares
Pure Storage: +28,409 shares
GeneDx: +9,486 shares

The pattern is unmistakable: trim the megacaps and lean into the names Wood thinks still have room to run heading into 2026.

This story was originally published by TheStreet on Dec 5, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.