Meta stock surges on robust Q4 returns, experiences first-ever dividend pay‑out
The shares of Meta—which encompasses Facebook, Instagram, and WhatsApp—experienced a significant boost, notching a 14% increase. Investors' optimism grew following an influx of favorable news.
Feb 2, 2024 | updated: 4:29 AM EST, March 7, 2024
Mark Zuckerberg has reasons to celebrate as Facebook continues to grow
Primarily, the company's sales rose by 25% year-on-year (from $32.2 billion), coupled with an 8% decrease in expenditure (down to $23.73 billion). The revenue of the company hit $40.1 billion, with the number of daily active users reaching 2.11 billion.
In essence, the results for the fourth quarter exceeded expectations. A significant surge in the operational branch—more than doubling to 41%—was also recorded. This implied an increase in profitability, as CNBC pointed out.
A first in company history: a dividend will be paid out
The next cause for celebration is the announcement of the company's first ever dividend payment. Set at 50 cents per share, the dividend will be paid on March 26th.
Mark Zuckerberg, the company's founder, acknowledged that the past quarter's success is due to the continuing growth of the platform.
Significant progress has been made in fulfilling our vision of developing artificial intelligence and the metaverse. Further investments in AI are planned - he stated.
Meta anticipates further growth
Meta is gearing up for additional growth. The projection for the first quarter is $37 billion, reflecting a substantial increase from the $34.5 billion achieved in the previous quarter.
Susan Li, the company's finance director, agreed that the key contributing factors to the favorable results were elevated revenues from e-commerce, entertainment, and gaming sectors. Attaining this positive outcome was also facilitated by reductions in staff. With the current employee count exceeding 67,000, there is a 22% decrease from the previous year.
