Meta and Rocket Lab Insiders Sell Shares—So Why Is Wall Street Buying?

Core Insights - Insider selling at Meta Platforms and Rocket Lab has raised concerns among retail investors, but institutional investors continue to show strong support for both companies, indicating a divergence between insider actions and institutional confidence [1][6][19]. Meta Platforms - Meta's stock price is around $655 as of early March 2026, reflecting a significant rally driven by AI integration and robust advertising revenue [2]. - Despite insider selling, institutional investors have shown a net inflow of over $100 billion into Meta stock over the last 12 months, with notable purchases from billionaire investor Bill Ackman [8][11]. - Meta reported earnings per share (EPS) of $8.88, beating estimates, and achieved a revenue growth of 23.8% year-over-year, maintaining net margins above 30% [17]. - The company is viewed as a cash-flow machine with a dominant market position, and the current stock price is seen as a stepping stone toward higher valuations [11][23]. Rocket Lab - Rocket Lab's stock has surged from the $14 range to over $70 in one year, with significant insider selling, including CEO Peter Beck selling over $140 million in stock [12][13]. - The company has a $1.85 billion backlog, primarily from government contracts, providing long-term revenue visibility [18]. - Institutional ownership in Rocket Lab has increased to nearly 72%, with institutions purchasing $4.96 billion in shares while only selling $1.51 billion over the last 12 months [15]. - Despite a recent delay in the Neutron rocket launch, analysts view this as a temporary setback, and the company's strategic position in the market remains strong [16][23]. Investment Implications - The divergence between insider selling and institutional buying suggests that while insiders are cashing out, institutions are positioning for future growth, indicating potential investment opportunities for long-term growth [19][21]. - Investors may consider adding Meta Platforms to their watchlist for potential dips and view Rocket Lab's current pullback as an entry point due to strong institutional support [22].