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Meta Platforms (Nasdaq: META) boss Mark Zuckerberg sold $117.5 million worth of the tech giant’s stock in November, or 364,000 shares. The actions might suggest Meta’s CEO lacks strong confidence in the stock’s sustained growth, yet they could also be a straightforward strategy to take profits.
Zuckerberg’s META Stock Sales
Meta co-founder and CEO Mark Zuckerberg sold the company’s stock several times this month, which brought notable price gains.According to real-time market data provider Barchart, Zuckerberg offloaded 364,000 META shares in November, amounting to a total worth of $117.5 million. His latest sale was recorded on November 17, when the 39-year-old billionaire filed to sell $18.6 million worth of stock, or around 56,000 shares.
Meta Platforms Insider Trading Alert 🚨
Chair & CEO Mark Zuckerberg has dumped 364,000 $META shares this month for a total value of $117.5 million pic.twitter.com/rQfjh4yXPS
— Barchart (@Barchart) November 23, 2023
Meta Up 13% in November, Can it Continue the Uptrend?
Investors closely monitor big insider sales because they may indicate the management’s perceptions of the company’s future. Frequent sales could signal concerns or a lack of confidence in sustained growth, but they could also be a strategic move to secure profits.At the same time, it could mean both. Meta has witnessed a significant rally in November, surging more than 13% since the start of the month. The ascent was primarily propelled by Meta’s latest earnings results, which were reported in late October. The Q3 report beat Wall Street’s estimates on top and bottom lines, with the revenue recording the fastest year-over-year growth rate since 2021. The report highlighted strong growth in Meta’s core digital ads business as clients recovered from a challenging 2022 when revenue saw three consecutive quarterly declines. Simultaneously, the broader market rally has also boosted Meta’s uptrend. After dropping to as low as 4,130 late last month, the S&P 500 embarked on a sharp upward trajectory over the past few weeks, blasting above 4,500 recently. Some analysts believe the market has even more growth room, with BofA analyst Savita Subramanian predicting a leap toward a record-breaking 5,000 in 2024. If those bullish predictions come to fruition and macroeconomic challenges continue to ease, the AI-oriented Meta looks well-positioned to continue its uptrend. The company expects its sales to grow around 19% from a year earlier in the current quarter and has cut its expenses forecast for the full fiscal year. More By This Author:Wall Street Hikes Nvidia Price Target After Better Than Expected Q3Three Travel Stocks To Consider This Holiday Season BofA Analyst: SPX Can Hit 5,000 In 2024
