Meta’s Mega Quarter: Surging Profits, Dividends, and Stock Soars 14%
In a stunning financial performance, Meta, previously known as Facebook, reported a remarkable 200% year-over-year profit growth, reaching a staggering $14 billion for the last quarter of 2023. This exceeded the expectations of Wall Street analysts, propelling Meta’s stock to a soaring 14% surge in after-hours trading. The tech giant’s sales for the same period witnessed a robust 25% growth, surpassing $40 billion.
Adding a sweetener for investors, Meta declared its inaugural cash dividend of $0.50 per share, scheduled for payout on March 26 to shareholders of record by February 22. Additionally, a substantial $50 billion share buyback was unveiled, aiming to enhance stock prices. Such financial strategies, though criticized for potentially inflating stock prices artificially, seem to have resonated positively with investors.
This financial triumph marked the culmination of Meta’s self-proclaimed “year of efficiency,” initiated by CEO Mark Zuckerberg in February of the previous year. The strategy involved strategic layoffs and cost-cutting measures, ultimately succeeding in reversing revenue declines and strengthening the company’s stock position.
For the full year 2023, Meta reported a staggering 69% year-over-year profit growth, totaling $39 billion. The company’s stock witnessed an impressive 109% gain since the same period last year, reflecting the success of its turnaround initiatives.
Meta’s CEO, Mark Zuckerberg, expressed gratitude to employees, partners, shareholders, and the community, stating, “Our communities are growing, and our businesses are back on track.” This positive sentiment comes in the wake of Zuckerberg’s appearance on Capitol Hill, where he issued a rare apology to parents of children harmed by Facebook and Instagram, acknowledging the platform’s responsibility.
Despite Facebook’s daily active users growing by 6% year-over-year to surpass 2.1 billion, Meta announced a shift in reporting, focusing on daily active people across its broader family of apps, which averaged 3.19 billion in December. Moreover, Meta’s foray into the social media arena with Threads, a rival to Twitter, showed promise with 130 million monthly active users.
A notable highlight from the financial report was Meta’s 2% year-over-year increase in the average price per ad in the December quarter, signaling positive momentum in its core advertising business. This growth marked a pivotal moment, as it was the first time in the past year that the average price per ad saw an upward trend.
In conclusion, Meta’s recent financial revelations underscore not only a thriving business but also strategic moves that resonate well with investors, setting the stage for further industry influence and growth.
