There’s nothing inherently wrong with keeping tabs on insider share-selling at large companies. However, even if Meta Platforms‘ (NASDAQ:META) famous chief executive is unloading his shares, this doesn’t have to change your assessment of Meta Platforms. After a thorough analysis, we’re still assigning a confident “A” grade to META stock.
Meta Platforms isn’t just a Magnificent Seven member. It’s one of the strongest performers among the Mag-7 and a powerhouse revenue generator. With that in mind, investors should just stay calm even if they catch wind of an insider selling Meta Platforms stock.
CEO’s META Stock Sales Are in the Headlines
By now, you may have seen the headlines about Meta Platforms CEO Mark Zuckerberg selling shares of his company. One report states that Zuckerberg has sold nearly $500 million worth of Meta Platforms stock.
Of course, Zuckerberg still owns a sizable stake in Meta Platforms. He’s not just giving up on the social-media juggernaut he built from the ground up. Maybe Zuckerberg just wanted to take some profits. There’s no point, really, in trying to guess what his rationale might be.
Meanwhile, Meta Platforms remains a redoubtable giant among social-media companies. For example, Meta Platforms appears to be gaining traction in short-form videos with its Reels platform.
At one point in time, investors might have wondered whether Reels could thrive in a world that seems to be dominated by TikTok. However, according to a Barron’s report, “Total Reels viewing time is up 70% from a year ago.”
Tom Allison, the head of Meta Platforms’ Facebook business, reported that Reels currently “accounts for a third of all video watched on Facebook.” So, stay tuned for further developments as Reels could prove to be a strong revenue generator for Meta Platforms.
Meta Platforms Has a Big Client in China
The growth of Reels is just one piece of evidence that Meta Platforms is a formidable social-media behemoth. More evidence comes from the fact that, in 2023, Meta Platforms’ advertisement impressions increased 28% year over year (YOY).
In addition, Meta Platforms isn’t only generating ad revenue in the U.S. According to The Wall Street Journal, Meta Platforms “top advertiser by revenue in 2023 was the e-commerce company Temu,” which is owned by China-based online retailer PDD (NASDAQ:PDD).
It appears that PDD is eager to grow its Temu discount-focused e-commerce platform in the U.S. Believe it or not, Temu spent around $2 billion on Meta Platforms advertisements in 2023. This is a significant development that you might have missed, as the financial media has been busy focusing on Meta Platforms’ first-ever dividend.
Meta Platforms Stock: CEO’s Share Sales Aren’t a Deal Breaker
Clearly, we’re not losing sleep over Zuckerberg’s Meta Platforms share sales. This isn’t a deal breaker, as we’re still assigning META stock an “A” grade.
Meta Platforms remains a social-media juggernaut with robust advertising revenue from multiple countries. So, while it’s fine to monitor insider share-selling activity, Meta Platforms stock still deserves a top spot on your high-conviction watch list.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
