Meta Shares Sold by BW Gestao de Investimentos Ltd

Meta Platforms (which owns Facebook, Instagram, WhatsApp, etc.) remains a topic for discussion among enterprises, technology giants and businesses. Only in recent weeks, one of the largest shareholders of Meta, BW Gestao de Investimentos Ltda., sold a significant portion of its Meta shares. With that said, Meta reported a very strong quarter, with growth exceeding expectations thanks to a robust advertising business and a bigger investment in artificial intelligence (AI).

In this article, we will describe what has happened in BW Gestao so far, why Meta’s recent earnings are a positive indication of its continuing growth, what’s driving institutional interest in its shares, and what the company means for investors in an ever-changing world?

The Big Sell-Off by BW Gestao

BW Gestao de Investimentos Ltda., trimmed its weight on Meta by an enormous 83.3% during Q1 2025. The CEO received a small 7,325 share ownership stake in the company, and most recent filings with the U.S. Securities and Exchange Commission (SEC) show that the company issued 18,937 shares and owns a meager 3,801 shares (worth about $2.19 million).

This enormous dilution is not a lack of trust in Meta’s future as other institutional investors have not reduced their stake in the company. In fact, if anything, they have increased their stake during the same period.

An acquisition of this size and proportion is even more impressive, especially coming from BW Gestao. But this must be put in context. Portfolio reallocations are primarily made after the investment firm has achieved a risk/opportunity balance.

Since then, Meta has also continued to satisfy most institutional investor beliefs, with Inlight Wealth Management LLC, Barnes Dennig Private Wealth Management LLC, and MJT & Associates Financial Advisory Group Inc. adding or keeping their weights in the stock during the first quarter of this year. Similarly, the institutional investors own nearly 80% of Meta’s supply, meaning that the company continues to be a hot commodity on Wall Street.

Meta is a very scorching stock

Meta Q2 2025 results have been near spectacular, posting impressive beats on all points across the board from Wall Street expectations. The company reported per share income of $7.14 per share higher than analyst estimates of $5.75 to $5.89 per share. Its revenues reached $47.52 billion, up a solid 21.6% over last year’s $39.07 billion and well ahead of the pre-season estimate of close to $44.5 billion.

Meta’s Q2 revenue soared by 22% year-over-year to $47.52 billion, significantly exceeding expectations, driven largely by a 21% increase in AI-powered digital advertising revenue.

CEO Mark Zuckerberg highlighted the company’s chase for “personal super intelligence,” backed by substantial investments in AI infrastructure. Despite continued losses in Reality Labs, strong sales of Ray-Ban Meta Smart Glasses and Meta Quest headsets brought in $370 million in revenue, 5% more than the $353 million of Q2 2024.

The overall brutal economics of the world, our ad revenue business is super healthy, dynamic, and the number of people engaging and monetizing on our platform continues to grow thanks to some really cool developments in AI.

On the bottom line, Meta reported a $18.34 billion net income, which was up 36% from last year, and generated a net margin of nearly 40%. That translates into a return on equity of 39.33%, a gauge of the company’s efficiency and its ability to create cash.

Embracing the AI Future

The other important factor that can be taken as the most important factor in the foundation of Meta bullish investor mindset and good financial results is the huge AI investment. Mark Zuckerberg has sold billions of people around the world a dream of individual superintelligence. Meta AI is ready to supercharge human connection to realize new human potentials by creating a whole new class of applications.

Meta has been making substantial investments in AI-related projects and expanding headcount in areas it believes are its core areas of focus like monetization, data infrastructure, and Reality Labs, the developer of virtual and augmented reality technologies.

In a new move that demonstrates just how serious Meta is taking AI as a growth catalyst. The company recently recruited some of the brightest minds in AI, including former OpenAI researcher Shengjia Zhao to become chief scientist at Superintelligence Lab at Meta.

Reality Labs’ Q2 loss of around $4.53 billion was relatively small and the fact that Meta is willing to tolerate short-term pain for long-term AI and metaverse gains, is a testament to a long-term risk-taking strategy that investors have rewarded. 

The Institutional Interest is back in town

Meta is almost exclusively an institutional stock but BW Gestao has sold most of the shares. There is much more appetite for other funds to add a new share or fill up an existing position. For instance, hedge funds like JCIC Asset Management Inc. have more than doubled their stakes in Meta, and today institutional investors continue to hold nearly 80% of the shares outstanding. 

It can be clearly seen that the current valuation of the company is considered attractive by many large players, based on the company’s growth rates and business model. Consequently, the company’s valuation is approximately $ 1.85 trillion in market cap. The stock traded from the 52-week low at 479.80 to the high at 796.25 with recent trading around a 735-747 range, supported by decent fundamentals including PE of near 26.6 and good free cash flow generation. 

What is Insider Activity & Insider Activity?

There has also been a significant stock movement from meta insiders over the past few months. CTO Andrew Bosworth sold 11,694 shares for an average price of around 775, down more than 86% on his position. Also recently, legal insider Jennifer Newstead sold 519 shares of the company. These insider sales can be highly suspicious, but more often than not, insiders sell stock because of their own personal financial needs which have little to do with underlying company fundamentals, especially if the company itself continues to report good performance and a strong growth outlook.

Altogether, the insiders have sold and bought 234 million shares of stock over the last 90 days, but they continue to control nearly 13.6% of the company’s stock, a good sign of long-term confidence.

Meta Future Analysts are hopeful

The majority of analysts are optimistic about the stock price movement of Meta. It’s only a matter of time before research houses raise their price targets in response to Q2’s performance and fairytale optimism of Meta, as evidenced by the trailing target price of Meta as of late August/early September 2025.

That’s much more conservative; 600 to bullish 1086 from a consensus target price of $872.68 per share (or higher) means the near-term price of around 750 is likely to go up 9.5% to 18.7%.

Buy/Outperform ratings with higher target prices from Bank of America, Canaccord Genuity, Robert W. Baird, JPMorgan Chase, Sanford C. Bernstein, Barclays, Morgan Stanley and DBS Bank.

Meta Stock Price with AI ad revenue dominance and consistent margins, many bulls are looking to Metro and its kind for bullish opportunities.

Meta Late 2025 and beyond

Looking ahead, Meta expects its revenue for Q3 2025 to be in the range of $47.5 billion to $50.5 billion or year-on-year growth of 17% to 24 %. It is also expected that analyst consensus will have the full-year 2025 EPS near 26.7, about 10 points higher than it has been in the past few years with strength in advertising and operating efficiencies as well as new AI-enabled source of revenue.

Meta’s investments in AI and experiments in the AR/VR realm have set them up not only to stay relevant in the social media sector, but within tech itself as we continue to evolve towards AI and an immersive digital experience. While these questions of regulatory risk and economic risk have not been escaped, the strong foundations of cash flows, the strength of the balance sheet and the incentives to innovate all make Meta an interesting platform for growth going forward.