META Rallies to Prove Sellers Wrong
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META Platforms Inc (META:US) has been in the news recently for a number of reasons. First, it is the launch of its Twitter-like platform ‘Threads’ which has everyone talking about the company. The launch comes amid rivalry between CEO Mark Zuckerburg and Twitter owner Elon Musk. In fact, Musk has already initiated warning for legal action against META, making it clear that he feels it is an infringement on intellectual property. The two billionaires are likely to continue their battle on social media.
The more relevant reason for traders, however, is the stock's recent performance. META stock has more than tripled in value in just over 8 months, making it one of the best-performing stocks in the market. With nearly 3 billion users on its biggest social media platform ‘Facebook’, there is a realization in the market that the company might finally be able to realize the potential of having such a large user base.
The bull run that started in November last year has earned many politicians hefty gains. But some of them were too early to sell and have missed out on a lot of returns they could have otherwise secured.
Langevin and Wyden Sell at the Bottom
Jim Langevin, the Democrat Representative from Rhode Island, sold $101,000 - $265,000 worth of META stock right at the start of the bull run in November 2022. He sold a major chunk when the stock closed at $114.22, a price level so low that it was last seen at the end of 2016. Unless he has been holding the stock for a very long period of time, it is unlikely he made any money off the holding.
Ron Wyden, the Senator from Oregon was also in the same boat as Langevin, selling his stake worth $50,000 - $100,000 when the stock closed at $113.02.
Michael McCaul Buys at the Bottom but Sells Too Early
Michael McCaul, the Texas Republican is a frequent trader. He bought $200,000 to $400,000 worth of META stock right at the start of the bull run, at an average price of $105.5, timing the bottom almost perfectly.
Since then, however, he has been on a selling spree. His four biggest trades have come in the last 6 months, selling $300,000 - $700,000 worth of stock during this period. These trades came at the price levels of $177.92 and $233.08.
There is no doubt that McCaul made decent returns on the trade. He got in at a great price but as with everyone else who didn’t give META much hope, he exited to book profits.
The stock currently trades above the $290 mark, showing even after timing the bottom quite well, the Republican Representative missed out on a lot of gains by not continuing to hold the stock.
