Meta, the parent company of Facebook, has once again made headlines with its impressive fourth-quarter earnings report, surpassing analyst expectations on earnings, revenue, and user growth. The announcement also included a first for the company: a dividend payment to its investors. This news sent Meta’s stock soaring 15% in extended trading.
The Dividend
Meta announced a dividend of 50 cents per share with this decision coming as the company’s cash reserves grew to $65.4 billion, up from $40.7 billion at the end of the previous year. Additionally, Meta revealed a massive $50 billion share buyback program.
The Earnings
- Earnings Per Share (EPS): $5.33, expected $4.96.
- Revenue: $40.1 billion, exceeding the forecast of $39.18 billion.
- A notable improvement in operating margin to 41%,
- Daily active users hit 2.11 billion and monthly active users (MAUs) reached 3.07 billion, both surpassing expectations.
There was a second surprise which came with the earnings – ad business growth surpassing that of Google.
These results have been fueled by advancements in artificial intelligence, user growth, and digital ad sales, alongside significant cost reductions through layoffs. The fourth quarter saw a 25% revenue increase to $40.1 billion and a net income surge over 200% to $14 billion. Meta’s future outlook remains positive with revenue forecasts exceeding Wall Street expectations.
This not only demonstrates how stable Meta has become, but also reaffirms its position as a leading player in the tech industry. With investments in AI and the metaverse, alongside a strategic approach, Meta remains one of the leading tech companies.
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