Meta, the parent company of Facebook, experienced a significant increase in stock market value, soaring over $200 billion and marking its most substantial one-day percentage increase in a year (via Reuters).
This surge followed Meta’s announcement of its first-ever dividend declaration and robust financial results.
Days before Facebook’s 20th anniversary, Meta authorized an additional $50 billion for share repurchases and introduced a quarterly dividend of 50 cents per share. As a result, Meta’s stock saw an impressive increase of up to 21.7%.
What’s more, Meta has become the first among its generation of internet giants to issue a dividend and joins the ranks of the so-called “Magnificent Seven” stocks, matching Apple with a yield of 0.5%, as per LSEG data.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, commended Meta’s move, stating that “The returning of cash to shareholders is a bold and well-regarded move.”
CEO Mark Zuckerberg stands to benefit significantly from the dividend plan, potentially receiving about $175 million every quarter based on his ownership of approximately 350 million Meta Class A and Class B shares.
Investing.com analyst Thomas Monteiro praised Meta’s timing, stating that “Meta’s strategy of announcing buybacks and dividends right before the Fed begins to cut rates is a brilliant move.”
Additionally, Meta’s fourth-quarter results showcased strong ad sales and a rebound in user growth, leading to a 25% surge in revenue. The company’s net income tripled to $14.02 billion, driven by an 8% reduction in costs and expenses following job cuts totaling over 21,000 since late 2022.
This boost demonstrates Meta’s continued success in navigating the evolving landscape of social media platforms while providing valuable returns for investors.
