Meta Platforms (META) stock surged more than 20% on Friday following the company’s release of its fourth-quarter earnings, far surpassing analysts’ expectations. The stock rally was further fueled by Meta’s announcement of a shareholder return program and its first-ever cash dividend.
The social media giant reported adjusted earnings per share (EPS) of $5.33 on revenue of $40.11 billion for the fourth quarter, outperforming the anticipated EPS of $4.94 on revenue of $39.01 billion. This impressive financial performance resulted in a market cap increase of nearly $200 billion, setting a new record in the stock market. Meta’s shares were trading around $475 on Friday, marking a substantial turnaround from its low of $90 earlier in 2022.
The company’s market cap now stands above $1.2 trillion, underscoring its position as a major player in the tech industry. The significant surge in Meta’s stock price also led to a considerable increase in the net worth of its founder and CEO, Mark Zuckerberg, whose wealth grew by more than $28 billion in a single day.
In a strategic move to reward its shareholders, Meta announced its first-ever cash dividend program. The declaration of a quarterly dividend of $0.50 per share, scheduled to be paid out on March 26, buoyed investor sentiment and further propelled the stock price. Zuckerberg, who owns approximately 350 million shares of the company, is poised to benefit significantly from this shareholder-friendly initiative.
The impressive financial results and strategic shareholder return initiatives were accompanied by other developments within the tech and business landscape. As Meta experienced a surge in its stock value, other news surfaced, including the CEO being grilled on Capitol Hill over child victimization and the company delivering a surprise dividend.
The positive trajectory displayed by Meta in its earnings and dividend announcement positions the company as a formidable force in the tech sector, enhancing its appeal to investors and reinforcing its standing as a dominant player in the digital realm.
