Meta Platforms' shares surged more than 12% in extended trading following the announcement of its first-ever quarterly dividend of $0.50 per share and a $50 billion stock buyback.
Meta Platforms sees a 12% surge in stock after announcing its first-ever dividend and a $50 billion buyback.
Meta's Q4 results exceeded Wall Street expectations, with earnings at $5.33 per share and revenue at $40.1 billion, projecting sustained momentum into 2024.
The company successfully rebounded from a 2022 ad business slowdown, attributing the recovery to investments in artificial intelligence, simplifying ad campaign management.
Meta's stock reached an all-time high earlier in the week, recovering from challenges faced post-pandemic and further establishing its dominant position.
User growth surpasses expectations, boasting 2.11 billion daily and 3.07 billion monthly active users.
Operating expenses dropped 8% year-over-year due to significant headcount reductions, improving efficiency, but the Reality Labs segment continues to incur losses.
The metaverse-focused Reality Labs division surpassed $1 billion in quarterly revenue for the first time. Meta launched sales for its latest virtual-reality headset last fall.
Meta anticipates a meaningful year-over-year increase in operating losses in the next quarter, primarily due to ongoing efforts in augmented and virtual reality product development.
Meta's financial moves, stellar Q4 performance, and user growth signal a robust outlook, even as it navigates challenges in emerging technologies and regulatory landscapes.