Meta, formerly known as Facebook, made waves in the financial world after reporting a massive surge in fourth-quarter profits and issuing its first-ever dividend. The company’s shares soared by more than 20% on Friday, closing at an all-time high. This significant jump came after Meta announced that its revenue had risen by 25% in the last quarter, reaching an impressive $40.1 billion.
The company also reported a remarkable increase in net income, which tripled to $14 billion from $4.65 billion a year earlier. This exceptional performance provided further evidence that the online advertising market is continuing to rebound. Additionally, Meta is forecasting first-quarter sales to be in the range of $34.5 billion to $37 billion, beating analysts’ expectations.
Another noteworthy development was Meta’s decision to pay investors a quarterly dividend for the first time, with a payout of 50 cents per share scheduled for March 26. This announcement, coupled with a $50 billion share buyback, further fueled the stock rally and led to a substantial increase in Meta’s market cap, pushing its total valuation past $1.2 trillion.
Additionally, Meta’s CEO, Mark Zuckerberg, focused on making 2023 a “year of efficiency” for the company. Despite significant investments in the metaverse, which are costing billions of dollars, Meta managed to double its operating margin to 41% and cut its expenses by 8% year over year to $23.73 billion.
Overall, Meta’s remarkable financial performance, the issuance of its first dividend, and its strategic cost-cutting measures have garnered widespread praise from investors. It has solidified Meta’s position as a mature and growth-oriented business, making it an appealing choice for investors seeking long-term stability and returns.
News Highlight :
– Meta’s shares closed up over 20% after reporting a tripling in fourth-quarter profit and issuing its first-ever dividend
– Revenue rose 25% to $40.1 billion in the fourth quarter, the fastest growth since mid-2021, indicating a rebound in the online ad market
– The company forecasts sales in the first quarter to be between $34.5 billion and $37 billion, higher than analysts’ expectations
– Mark Zuckerberg announced a quarterly dividend of 50 cents a share and a $50 billion share buyback, adding over $200 billion to Meta’s market cap
– The company’s moves in artificial intelligence, such as the LLaMA large language model, have been praised and seen as a potential for success
– Despite hefty investments in the metaverse, cost-cutting efforts have paid off with a doubling of the operating margin to 41% and decreased expenses of 8% compared to the previous year
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