Mark Zuckerberg Sold a Big Chunk of Meta Platforms Stock. Should Investors Worry?

Stock Market

Tracking insider share buying and selling can be valuable for retail investors. It’s extra important when the insider is none other than Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg. This is important information to consider, but it’s not a valid reason for you to divest your entire stake in META stock.

After all, Meta Platforms stock provides prime exposure to artificial intelligence (AI) technology, which is practically a requirement for diversified portfolios in 2023 and 2024. Furthermore, Meta Platforms is a robust revenue generator, having boosted its sales by 23% year over year in 2023’s third quarter. Still, let’s delve directly into the details of Zuckerberg’s big share sale.

How Much META Stock Did the CEO Sell?

Here’s the lowdown. According to a Bloomberg report, Zuckerberg (or more precisely, entities that he controls) sold “about 682,000 shares” of META stock “worth almost $185 million in November.” This is a notable event due to the size of the share sale, but that’s not the only detail that will raise eyebrows.

Interestingly, it’s Zuckerberg’s first sale of Meta Platforms stock in two years. This implies that the CEO didn’t sell any shares of his company during the sharp, persistent downturn of 2022.

There’s no way to know exactly why Zuckerberg chose to sell this big chunk of META stock in November. However, it’s certainly possible that he employs a “buy low, sell higher” strategy. As it turns out, 2022 was a great year to hold Meta Platforms shares instead of selling them.

Moreover, Bloomberg observed that META stock “surged 172% this year through the end of November.” Can you really blame Zuckerberg for choosing to engage in some profit taking after such a powerful rally? Besides, the CEO still holds around 13% of Meta Platforms’ shares, so clearly he still believes in the company’s future growth prospects.

You Can Still Hold Some Meta Platforms Stock for AI Exposure

Zuckerberg still holds some Meta Platforms stock, and you can, too. There’s really no urgency to sell everything and miss out on potential gains in 2024.

Most retail investors should have at least a little bit of AI market exposure in their portfolios. Owning META stock is a simple way to achieve this.

First of all, Meta Platforms is building an AI system to rival OpenAI’s ChatGPT. Also, the company is launching an AI model for writing computer codes. On top of all that, Meta plans to work with IBM (NYSE:IBM) and other tech-forward firms to build “a community” to advance “open, safe, responsible AI.”

And, of course, Meta Platforms has embedded its social media apps with generative AI functionalities. So, if you’re serious about growing your portfolio’s value through participation in AI-tech businesses, consider a share position in Meta Platforms.

Don’t Worry About Zuckerberg’s META Stock Sale

Zuckerberg may have sold some META stock to take profits, and there might have been other reasons. This shouldn’t be your biggest concern. What’s important is that Meta Platforms continues to generate strong revenue. Plus, the company offers prime exposure to the latest in AI technology.

Consequently, you can sell some Meta Platforms stock if you want to book profits after the mega-rally. Don’t feel an urgent need to liquidate your entire position, though. As long as Meta Platforms continues to grow and innovate, it makes sense to stay invested.

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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Articles You May Like

Bearish Blades: 3 Falling Knives to Dodge in 2024
$100K Starter Kit: 3 Stocks to Become a Millionaire by 2034
3 AI Stocks Trading Below Their True Potential
3 Utility Stocks Short Sellers Are Pulling the Plug On: Is a Power Outage Looming?
Is C3.ai Stock Ready to Fly or Crash and Burn?