Tech Insider Selling Surges: What It Means for Major Stocks
Insider selling has sharply increased in major tech stocks such as AppLovin (NASDAQ: APP), Broadcom (NASDAQ: AVGO), and Netflix (NASDAQ: NFLX) during Q4 2024. The high-profile sellers include CEOs, CFOs, directors, and other key executives from these companies, raising concerns about potential market peaks. Despite the selling, these companies continue to show strong growth, supported by cash flow and shareholder value. Institutional investors and analysts provide a counterbalance to insider sales, which helps maintain market sentiment.
AppLovin’s Growth Trajectory Remains Promising
In the three months leading to mid-January 2025, AppLovin saw the highest level of insider selling among tech stocks. Ten insiders, including the CEO and CFO, sold shares in modest amounts. This comes after a stunning rise in 2024, where shares surged nearly 1000%, offering insiders a chance to cash in on their investments. Strong revenue growth and improved earnings have propelled this stock forward, with expectations of around 20% top-line growth in 2025 alongside a projected 50% increase in GAAP earnings.
Support from institutional investors and analysts is robust. Coverage is increasing, sentiment is strengthening, and price targets are rising, suggesting the potential for new highs in 2025. Analysts are optimistic, predicting a 35% gain by year-end, as institutional ownership surpasses 40%, with buyers consistently outpacing sellers.
Confluent Insiders Cash Out During Market Upsurge
Confluent has not experienced the same level of optimism as AppLovin, but its stock rose in the latter half of 2024, prompting insider sales. Insiders, including the CEO and CAO, still hold a solid 14% of the stock. Institutional investors have been net buyers throughout 2024 and Q1 2025, accumulating over 78% ownership, which supports the stock’s price movement.
Analysts are also bullish, with heightening sentiment and increasing price targets. They forecast a nearly 30% stock gain as it approaches the upper limits of a long-term trading range. The outlook for Confluent in 2025 suggests gradual growth and improved profit margins.
Broadcom: Insider Selling Offset by Institutional Confidence
Insiders at Broadcom also sold stocks as they reached new highs late in 2025. Nonetheless, a strong 78% institutional interest underlines ongoing confidence in the stock. Analysts maintain a positive “Buy” sentiment, with price targets rising thanks to the company’s performance in 2024 and a promising outlook for custom AI services.
Guidance suggests that the custom segment could sustain robust growth over the coming years. Analysts estimate a potential 15% upside in 2025, with even more upside if high-end targets are met.
Netflix Insiders Take Profits Amid Strong Performance
Netflix was the most actively sold stock by insiders in Q4 2024, including multiple transactions from CEO and chairman Reed Hastings. Despite the selling, the stock appreciated nearly 100% in 2024 and 500% over the last three years. Institutional investors increased their holdings to over 80% of the market, which adds a layer of stability.
Analysts are positive about Netflix’s prospects, buoyed by improving subscriber growth, successful ad-supported memberships, and wider profit margins. Key achievements in 2024 include earning investment-grade debt ratings and significant capital returns, highlighting the company’s strength.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
