Meta Platforms CEO Mark Zuckerberg Sells META Stock: Should Investors Worry?
Monitoring insider stock-selling activity is worthwhile, as it could be a sign of trouble at a company. In the case of Meta Platforms (NASDAQ:META), CEO Mark Zuckerberg reported selling many META stock shares. Still, this isn’t a sufficient reason for retail investors to give up on Meta Platforms in 2024.
Reasons Behind Mark Zuckerberg’s Major META Stock Dumps
Meta Platforms is deeply involved in the metaverse and virtual reality equipment. Yet, above all else, Meta Platforms is a social media juggernaut. Suppose the company can continue to develop its social media market presence in the coming year. In that case, Meta Platforms will offer its shareholders supreme value even if Zuckerberg sells millions of shares.
Insider Selling at Meta Platforms: Should Investors Be Concerned?
If you like to monitor insider selling at Meta Platforms, here’s some notable news. Reportedly, Chief Legal Officer Jennifer Newstead sold 566 Meta Platforms shares on Dec. 12.
That’s just a drop in the bucket compared to what the company’s chief executive did. According to an X (formerly known as Twitter) posting from BarChart.com, Zuckerberg “continues to dump his $META shares at lightning speed with another sale of 122,208 shares for $42.7 million.”
With that, Zuckerberg has “sold $327 million worth of shares since November.” Concerned investors might ask, “Why?” My response to that is, “Why ask why?”
There’s no way to know exactly why Zuckerberg chose to sell so many of his company’s shares. Perhaps he just wants to take profits on META stock after its best year ever. This doesn’t necessarily mean Zuckerberg sees imminent problems at Meta Platforms.
Remember, no amount of insider share selling will negate Meta Platforms’ outstanding third-quarter 2023 results. Meta Platforms’ revenue rose 23% year-over-year, and the company’s net income soared 164%. These statistics should assuage investors’ concerns about insider share selling at Meta Platforms.
Meta Platforms: A Mega-Successful Social Media Giant in 2024
In the future, 2024 should be a banner year for Meta Platforms. The company will thrive not because of the metaverse or VR but because of the company’s expanding presence as a social media bellwether.
For instance, recent research indicates that Meta Platforms’ Instagram Reels is actually outperforming TikTok in its delivery of branded video content. Specifically, data from Emplifi (via a Marketing Dive summary) found that “longer Reels (those over 90 seconds) had double the median number of video views than those on TikTok.”
Granted, TikTok remains a popular platform for short-form videos. However, Instagram Reels is finding a successful niche among branded content providers with longer videos. Beating TikTok in this area isn’t easy, so Meta Platforms deserves credit for that achievement.
Meta Platforms’ Threads platform, which rivals X as a short-form posting app, reportedly reaches hundreds of millions across the European Union (E.U.). Instagram CEO Adam Mosseri disclosed that a whopping 450 million people in the E.U. have access to Threads.
Don’t Be Alarmed by Insider Selling: META Stock Still Promises Strong Returns
The data points to continued success for Meta Platforms as a global social media juggernaut. Thus, there’s no doubt that Meta Platforms will rake in robust revenue in 2024, even if the company doesn’t sell many VR headsets.
So, don’t lose your cool even if Zuckerberg dumped many Meta Platforms shares. It’s his business to worry about his portfolio, and it’s your business to focus on your finances. Hence, feel free to accumulate some META stock shares for strong returns on your investment in 2024.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Analyst comment
Positive news. The selling of META stock by CEO Mark Zuckerberg should not be a cause for concern for retail investors. Meta Platforms is still a strong company with a dominant presence in social media. Zuckerberg’s selling of shares does not indicate imminent problems, and the company’s strong financial performance and success in areas like Instagram Reels are promising for future returns. Investors can feel confident in accumulating META stock for strong returns in 2024.
