Billionaires, including Mark Zuckerberg, are selling shares of Meta Platforms due to potential growth slowdown.

From Nasdaq: 2024-07-12 08:30:00

Meta Platforms (NASDAQ: META) stock has rebounded significantly in the past year, surging by 85% and reaching an all-time high. However, numerous insiders and billionaires, including Mark Zuckerberg, have been selling their shares, signaling a potential slowdown in growth.

Meta’s stock surged due to improved revenue and earnings growth after facing challenges from Apple’s iOS update, TikTok competition, and macroeconomic headwinds in 2022. The company countered these challenges by ramping up ad sales, expanding its Reels short videos, and investing in its Reality Labs segment.

Despite positive growth prospects for Meta, big investors have been taking profits due to unpredictable challenges, such as the reliance on Chinese advertisers and slowing user growth. Increased expenses related to AI services and legal costs could impact the company’s future performance.

While some investors are trimming their stake in Meta, long-term investors may want to hold onto the stock. With a wide user base, growth potential in the metaverse, and strong financials, Meta remains a solid investment option despite short-term uncertainties.

Consider investing in Meta Platforms after evaluating its potential against other top stock picks. The Motley Fool Stock Advisor’s recommended list of 10 best stocks excludes Meta Platforms, but other picks have generated significant returns, providing a blueprint for long-term investment success.



Read more at Nasdaq: Billionaires Are Selling Shares of This Well-Known Stock