Meta, the parent company of Facebook, witnessed a remarkable surge of over $200 billion in stock market value, marking its most significant one-day percentage increase in a year (via Reuters).
This boost followed Meta’s initiation of its inaugural dividend declaration and robust financial results.
Days before Facebook’s 20th anniversary, Meta authorized an additional $50 billion for share repurchases. Simultaneously, the company announced a quarterly dividend of 50 cents per share. As a result, Meta’s stock experienced a notable increase of up to 21.7%.
Meta has also become the first among its generation of internet giants to issue a dividend. It also 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, “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, “Meta’s strategy of announcing buybacks and dividends right before the Fed begins to cut rates is a brilliant move.”
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.
