Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg leveraged the company’s stock growth in 2024 to cash in on his stake through trades that accelerated in December.
Specifically, as of December 31, filings indicate that Zuckerberg offloaded $335.94 million in company shares during the last month of the year alone.
According to insider trading data, Zuckerberg executed 19 separate sell transactions throughout the month. The largest sale, recorded on December 13, totaled $22.75 million.
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One of his latest sales occurred on December 27, when Zuckerberg sold approximately $1.39 million in Meta shares through his entities, CZI Holdings, LLC and the Chan Zuckerberg Initiative Foundation.
CZI Holdings sold $863,728 in shares at prices between $600.08 and $601.15, while the Foundation offloaded $523,347, ranging from $600.00 to $601.47. The sales were part of a pre-established trading plan and involved Class A Common Stock.
Notably, in August, Zuckerberg adopted Rule 10b5-1 to offload 518,004 Class A shares and 1.7 million Class B shares owned by entities affiliated with him.
Impact of Zuckerberg’s stock sales
The tech mogul’s frequent and substantial sell-offs have caught the attention of investors, sparking speculation about the company’s overall health. While it is not unusual for top executives to periodically cash out shares, the sheer volume of Zuckerberg’s December sales stands out.
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Although such sales can potentially lead to volatility for Meta stock, it is important to note that Zuckerberg’s trading plan could increase the firm’s outstanding Class A shares. However, the company’s strong buyback program will likely offset any selling pressure.
For instance, in the first nine months of 2024, Meta repurchased 65 million shares for $29.81 billion. As of September 30, the company still had $51.28 billion authorized for buybacks.
What next for META stock
The stock sale comes as META’s share price rallied significantly in 2024, building on the general technology sector boom mainly driven by artificial intelligence (AI) demand. This year, the stock has risen over 70%, trading at $590.74 as of press time. However, the equity is showing short-term weakness, dropping 2% in the past week.
Looking ahead to 2025, META is driven by several fundamental factors, with artificial intelligence, WhatsApp, and wearable technology at the forefront. WhatsApp has experienced notable growth as the company accelerated advertising, helping the platform reach 100 million monthly users in the United States.
Instagram is also poised for growth, potentially benefiting from TikTok’s uncertain future in the US as Meta courts more digital creators. Meanwhile, Threads recently hit 275 million monthly users, suggesting the platform’s momentum isn’t slowing down as it seeks to compete with X.
Attention is also focused on the company’s wearables after Zuckerberg teased that 2025 will be pivotal for Meta’s smart glasses, calling them the “next major computing platform.” As reported by Finbold, investment strategist Shay Baloor highlighted META as one of the stocks to watch in 2025.
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