To The Moon

What happened

Recently I chanced upon an article reading that Mark Zuckerberg has been selling his stock like crazy. Initially I thought it might be a fake news. But on more research, this is what I found initially.

Yes, the stocks are being sold regularly for huge amounts of profit. The usual knee jerk effect will be to sell$Meta Platforms, Inc.(META)$ if you were to react. But I went to dig further.

The Investigation

 First interesting thing I found is that insiders in Meta were regular sellers. Everyone including Mark has been selling, and nobody buying.

Second interesting point is that the insiders knew when not to sell. During the slumps of 2020 and 2022, selling volume was really low.

Aside, it was interesting to know that the selling was done by the trust and entities that Mark and his wife Priscilla controls, for charitable and political contributions

The numbers game

Looking at Meta's numbers, I gain some form of rationality. 

The revenue per share has been growing consistently over the past quarters. Free Cash Flow per share has been increasing nicely too.

The Net margin is widening nicely with FCF margin climbing beautifully. Debt to Equity is rather stable and reassuring.

On the valuation front, variously valuation plots have yielded fair value from 328 to 393.

Growth story for Meta looks attractive so far for me with AI pivot and the family of apps of Facebook, Instagram, WhatsApp, & Threads.

So what?

Well given the selling is ongoing with seemingly no huge impact on the price, plus knowing that MZ has sold before in the past for charitable or other reasons reassured me that a quick exit may not be the best move for now.

Additionally, the numbers on a yearly and quarterly movement is positive and the growth story still strong.

Of course the high cash burn on AR VR and metaverse is a disappointment still. However, I am confident that the Meta management can pivot away if things don't work out well.

The key learning here is not to act immediately to negative news. But to anchor your investing actions on facts, insights and due diligence.

Well I could be wrong. What do you all think about Meta?[Great]  

Like, share and comment as I would love to learn from you too.

Meanwhile, GST is raising soon for Singapore and inflation is not going to go away so fast here.[Spurting]  

How are you all going to weather the price increases in Singapore? 

@TigerStars @MillionaireTiger @CaptainTiger 

@Bonta @daz88888888 @LMSunshine @melson @GoodLife99 @SirBahamut