In the last few years, the stock market has gathered in an unwavering positive narrative about the prospect of artificial intelligence (AI). The momentum that encouraged technological stocks was especially worn in 2025.
Ai starting from China called Deepsek has posted a model similar to those who built chatgpt or confusion. The concern, however, is that Deepsek claims that he unlocked new methods for training AI models using older, seemingly less sophisticated architecture. As such, investors became concerned that hundreds of billions that US technological companies would pour into a expensive chips may be an excessive move. Unexpectedly, shares of shares for Big Tech, and especially “Magnificent Seven”, They were shorter in an epic way.
Still, one distinguished technological investor does not seem to have distracted the drama Deepseek. Of course, I am talking about the ARK Invest Cathie Wood director, which almost always seems to show a sense of optimism when it comes to new technology.
I will discover what magnificent seven stock only downed and made the case why I think her decision is a smart move.
One of the beautiful things about the ARK Invest is that the Fund is publishing its trading history every day. Investors usually need to wait until the end of the quarter to see what supplies of institutional investors bought and sold. Wood transparency is useful because it provides investors in real-time views in what the stock oversees.
Around January 24, it was when I first started listening to Cvrkure about Deepsek and I started seeing some titles of posting on financial information programs. The chart shows that they share Amazon(NASDAQ: AMZN) Obviously, he started sliding in the last days of January – because more news about Deepseek began to break through.
Well, Wood recorded these moves. Between January 27 and February 7th, Wood added over 120,000 shares worth more than $ 28 million on five of its stock markets (ETF), including ARK Next generation Internet,, Innovation ark,, Innovation of ARK FINTECH,, ARK autonomic technology and roboticsand ARK Space’s research and innovation.
Date
Amazon’s shares bought by ARK Invest
27 January
7,461
28 January
41.338
6. February
153
7. February
72.457
Data source: ARK Invest.
In addition to the initial sale influenced by Deepsek, Wood has doubled on its conviction in Amazon, as evidenced by its purchase after the companies fourth quarter and all year long 2024.
Ever since he reported the earnings, the Amazon section has fallen again – primarily due to the large capital expenditure plan for 2025. excess of $ 100 billion. I think some investors have reservations regarding this consumption level due to Deepseek’s initial claims. For these reasons, some investors seem to be acidic currently on high technology.
Picture source: Getty Images.
As an investor in Amazon, I’m not personally worried about how much a company invests in AI infrastructure. I prefer more focused where The company consumes.
During the recent call to earning a company, the Amazon CEO Andy Jassy said that “the vast majority of this Capex spent on AWS”.
Data Source: Investor Relations.
When you look at the financial profile, it’s hard to discuss with Jassy’s vision. Over the last two years, Amazon has invested $ 8 billion in AI start-up called Anthropopi-Koji Company has firmly integrated with its cloud computing platform, Amazon Web Services (AWS). At this time, the AWS has also accelerated the growth of revenue and profit, now it becomes a job that generates more than $ 100 billion a year for sales, at the same time creating almost 50% of operational revenue growth.
Amazon’s investments in AI infrastructure already have a fruit. For this reason, I think that the Capex budget is from 2025 as a good sign for a greater growth that will come down on the road.
Nevertheless, Amazon is currently trading at a price up to a free cash flow (P/FCF) multiple 75s are significantly below the five-year average of 104.
I think many investors are too closer to Amazon’s consumption and do not give the management enough merit for the growth to which the company has already testified in the last two years (since the AI has become the main foci).
I think Wood’s idea is to buy a dip on Amazon at the moment incredibly smart. Investors with a long -term time horizon might want to consider monitoring Wood’s leadership and installing some company shares, while the shares remain with a historic discount.
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John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Adam Spaccoco He has positions in Amazon. Motley Fool has positions and recommends Amazon. Motley Fool has disclosure rules.
