Meta CEO Mark Zuckerberg sells stock worth $252,000 to provider Investing.com

Mark Zuckerberg, CEO and Chairman of Meta Platforms, Inc. (NASDAQ: META), recently sold approximately $252,073 worth of the company’s Class A common stock. The shares sold on October 30, 2024, at an average price of $600.17 per share. The transaction involved 420 shares and was executed by the Chan Zuckerberg Initiative according to a pre-established trading plan. After this transaction, Zuckerberg indirectly held 518,004 shares through the foundation.

In other recent news, Meta Platforms Inc. reported third-quarter 2024 total revenue rising 19% year over year to $40.6 billion. This strong growth was primarily driven by strong momentum in product offerings, particularly in artificial intelligence and user engagement. Meta’s applications have more than 3.2 billion daily active users, contributing significantly to revenue. However, despite Reality Labs’ revenue growth, it still incurred an operating loss.

On the other hand, Chinese researchers, including members of the Academy of Military Sciences, developed an artificial intelligence tool for potential military applications using Meta’s Llama model. This tool, called ChatBIT, is designed to be used for intelligence collection and operational decision-making in the military sector. This unauthorized use of Meta models for military purposes violates company policy, as stated by Meta Public Policy Director Molly Montgomery.

In an analyst note, Meta’s focus on artificial intelligence and infrastructure investments lays the foundation for expected growth through 2025. Although Reality Labs reported an operating loss, Meta’s overall outlook remains positive. The company plans to increase user engagement through content recommendations and video experiences, and plans to launch a full-screen video tab in early 2025.

InvestingPro Insights

While Mark Zuckerberg’s recent stock sale may be cause for concern, it’s important to place the deal within Meta’s broader financial picture. According to InvestingPro data, Meta has a huge market capitalization of US$1.43 trillion, highlighting its status as a technology giant. The company’s financials appear to be solid, with a P/E ratio of 26.07, which is relatively modest for a high-growth technology company.

The InvestingPro tip highlights Meta’s strong financial position, noting that the company “holds more cash than debt.” This financial stability provides Meta with flexibility for future investments and potential market declines. Furthermore, the tip that “18 analysts have raised their earnings estimates for the upcoming period” suggests that the market is positive about Meta’s recent financial performance.

Meta achieved an impressive gross margin of 81.5% for the trailing twelve months ended third quarter 2024, reflecting the company’s efficiency in generating profits from its core business operations. This is consistent with another InvestingPro tip, “Gross Margin Is Impressive.”

For investors looking for more comprehensive insights,InvestingPro offers 16 additional tips on Meta that provide deeper insight into a company’s financial health and market position.