Zuckerberg Intends to Shed $166 Million Worth of META Shares. Is That a Smart Move for Investors?
Zuck Unloads $733M in META Shares, Eyes More Sales
Not even a quick dip in Meta Platforms (META) stock can refrain CEO Mark Zuckerberg from cashing out big time. The tech titan has already sold over $733 million worth of company shares in Q1 2025, with plans to sell another $166 million on deck.
As routine as setting your alarm, Zuckerberg filed a prearranged 10b5-1 trading plan back in February 2025—a legal move commonly used to avoid insider trading and manage diversified holdings or fund pet projects.
Meta Stock: Tripled in Five Years, but Investors Hang Onto Opportunities
Riding a five-year rise of almost three times, Meta stock continues to tick up. But for those who consider past performance irrelevant, the question is, is META still ripe for investment?
Is Meta Platforms Still a Buy?
With Q1 2025 revenue hitting $42.3 billion ($17.6 billion operating income), and daily active users across Meta apps surpassing the mind-blowing 3.4 billion mark, it's no secret that Meta keeps shattering records. To top that, Zuckerberg recently outlined his ambitious AI strategy and investment priorities, giving us a glimpse into the tech company's future.
Ad Andreas Thomas, Chief Growth Officer at Stellar One Capital, breakdowns the current state of Meta Platforms as follows:
The Selling Point: Advertising and AI
At the core, AI is improving ad targeting and delivery on Meta's platforms. This new optimization contributes to ad revenue growth, with Q1 2025 posting an impressive 16% year-over-year increase. Moreover, cost efficiency is sweet, as AI-driven automation trims expenses while enhancing ad relevance.
Keeping Users Engaged
Personalized content and interactions powered by AI cater to user tastes, with Facebook, Instagram, and WhatsApp benefiting from increased user engagement. Expect even more SVU (Stickiness, Virality, Utility) as AI-assisted creative tools eventuate.
Future Markets: Meta Glasses and Metaverse
AI-driven devices like smart glasses and business messaging tools are just a couple of new market entrances fostered by Meta. Leveraging its user base across WhatsApp, Messenger, and Instagram, the company aims to establish business messaging as the next pillar of its business model.
AI's role in the metaverse, a collective virtual shared space, is far from insignificant. Zuckerberg envisions AI orchestrating immersive experiences, making Meta a formidable contender in the expanding metaverse tech landscape.
Is META Stock Undervalued?
Looking ahead, analysts foresee Meta adjusted earnings per share (EPS) climbing from $23.86 in 2024 to $41.38 in 2029. Set against the five-year average forward price-earnings multiple of 22.7x, META currently sits at a relatively higher 23.7x.
If Meta stock were priced at 20x forward earnings, it would—in cryptic fortune-teller style—suggest a trading price of $828 per share in early 2029. As tasty cakes taste even sweeter when they're free, this estimate translates to a potential dazzling 40% increase from current levels.
Out of the 53 analysts on META's scoring roster, 45 deem it a 'Strong Buy,' two think it's a 'Moderate Buy,' and four suggest a 'Hold.' Although two analysts believe it's a 'Strong Sell,' the overall sentiment is buoyant, with an average target price of $690—15% higher than the current trading price.
On the date of publication, Aditya Raghunath had no positions in any securities mentioned in this article. All information offered in this article is for educational and informational purposes only. For more details regarding our editorial operations, visit our website's disclosure policy.
- Despite plans by CEO Mark Zuckerberg to sell more META shares, the tech company's stock has tripled in value over the past five years, offering potential opportunities for investors.
- In the rapidly evolving world of finance and technology, investing in Meta Platforms could be an attractive proposition, given its ambitions in artificial intelligence and the metaverse.
- Analysts predict that Meta's adjusted earnings per share (EPS) will rise from $23.86 in 2024 to $41.38 in 2029, with the stock currently trading at a relatively higher forward price-earnings multiple compared to its average.
- To capitalize on the growth potential of Meta Platforms, investors might consider avoiding an average approach and carefully weighing the risks and rewards before making any decisions in the ever-changing realm of finance and technology.
