In recent years, the stock market has gathered in an unwavering positive story about the prospects of artificial intelligence (AI). The momentum, in particular, fed the technological shares in 2025 – until about two weeks ago, when the party music suddenly stopped out of nowhere.
An AI-start-up from China called Deepseek has released a model that is comparable to it built by Chatgpt or Pertlexity. However, the care is that Deepseek claims to have unlocked new methods to train AI models by using older, seemingly less advanced architectures. As such, investors are worried that the hundreds of billions that American technological companies are currently flows into expensive chipware may have been an over -style step. It is not surprising that the stock prices for Big Tech, and in particular the ‘Magnificent Seven’, received epic.
Nevertheless, a prominent tech investor does not seem to be abandoned by the Deepseek drama. Of course I am talking about Ark Invest CEO Cathie Wood – who almost always seems to show a sense of optimism when it comes to new technologies.
I will reveal which beautiful seven stockwood has just been scooped up and argue for why I think her decision is a smart move.
One of the fun things from Ark Invest is that the fund publishes its trade history every day. Usually investors have to wait until the end of the quarter to see which institutional investors have bought and sold. Wood’s transparency is useful because the investors offers a real -time glimpse in which shares they monitor.
Around January 24 I was when I first started Chirps about Deepseek and I started to see a few newspaper heads publishing on financial news programming. The graph shows that shares of Amazon(Nasdaq: AMZN) Started clearly in the last days of January – as more news about Deepseek began to break.
AMZN -data by YCHARTS
Well, Wood took note of these movements. Between January 27 and February 7, Wood added more than 120,000 shares worth more than $ 28 million to five of its exhibition -related funds (ETFs), including Ark Next Generation Internet” Ark Innovation” Ark Fintech Innovation” Ark Autonomous Technology & RoboticsAnd Ark Space Exploration & Innovation.
Date
Amazon -Shares Bought by Ark Invest
January 27
7,461
January 28
41,338
February 6
153
February 7
72,457
Data source: Ark Invest.
In addition to the first sale influenced by Deepseek, Wood doubled her conviction in Amazon, as evidenced by her purchases after the win of the fourth quarter and the fourth year 2024 on 6 February.
Since the report of the profit, Amazon shares has fallen again -mainly due to the substantial capital expenditure (Capex) plan of the company before 2025, which is expected to be more than $ 100 billion. I think some investors have reservations about this level of spending because of the first claims from Deepseek. For these reasons, some investors seem to acidify Big Tech at the moment.
Image source: Getty images.
As an investor in Amazon, I am not worried about how much the company is investing in AI infrastructure. I am more focused on Where The company spends.
During the recent profit call from the company, Amazon CEO Andy Jassy said that “the vast majority of those Capex spending on AI is for AWS.”
Data source: investor relationships.
If you look at the financial profile, it is difficult to argue with Jassy’s vision. In the past two years, Amazon has invested $ 8 billion in an AI-start-up called Anthropic-Die The company has tightly integrated the company with its Cloud Computing platform, Amazon Web Services (AWS). During this time, AWS has accelerated both sales and profit growth and now became a company that generates more than $ 100 billion in annual turnover and at the same time generates a growth of almost 50% in business income.
The investments of Amazon in AI infrastructure are already carrying fruit. For this reason I see the Capex budget of the company 2025 as a good sign for more growth to get on the road.
Nevertheless, Amazon is currently being traded at a price-to-free cash flow (P/FCF) Multiple of 75-room under the five-year average of 104.
I think that many investors appear too closely to the publication of Amazon and not giving enough credit for the growth that the company has seen in the past two years (because AI became the most important focal point).
I think Wood’s idea to buy the dip on Amazon is incredibly smart. Investors with a long -term time horizon may want to consider following Wood’s lead and creating some shares of the company, while the shares remain on a historic discount.
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*Stock Advisor Return on February 3, 2025
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of the Motley Fool. Adam Spatacco has positions in Amazon. The Motley Fool has positions and recommends Amazon. The Motley Fool has a disclosure policy.
Cathie Wood goes bargain hunt. Here is 1 “Magnificent Seven” stock that she just bought on the Deepsek Dip. was originally published by the Motley Fool
