Meta Platforms (META) Rockets 14% on Record Earnings and Debut Dividend
In a continuation of its impressive performance, Meta Platforms, the parent company of Facebook and Instagram, witnessed a significant surge in its stock late Thursday. The social media giant outperformed market expectations by reporting robust fourth-quarter earnings, with plans to issue its inaugural dividend.
For the quarter ending in December, Meta Platforms disclosed earnings of $5.33 per share on sales totaling $40.1 billion, surpassing analyst projections of $4.82 per share on $39.1 billion in sales, according to FactSet. The quarterly sales marked a remarkable 25% year-over-year increase, accompanied by a staggering 203% surge in earnings.
In a groundbreaking move, Meta Platforms announced the initiation of a dividend, set at 50 cents per share of common stock, payable on March 26 to shareholders on record as of Feb. 22.
Looking ahead, Meta anticipates sales between $34.5 billion and $37 billion for the current quarter, exceeding analyst forecasts of $33.9 billion, according to FactSet.
In after-hours trading, Meta stock soared more than 14%, reaching $450.42.
Meta CEO Mark Zuckerberg expressed satisfaction with the company’s performance, stating, “We had a good quarter as our community and business continue to grow. We’ve made a lot of progress on our vision for advancing AI and the metaverse.”
Key Highlights from Meta’s Q4:
- Monthly active users for Facebook rose by 3% year over year to 3.07 billion.
- Digital advertising sales remained the primary revenue driver, reaching $38.7 billion, up 24% from the previous year.
- The Reality Labs division, focused on the metaverse, achieved over $1 billion in quarterly revenue for the first time, despite a $4.6 billion loss.
- Meta’s Family of Apps, including Facebook, Instagram, WhatsApp, Reels, and Threads, generated $21 billion in income for the quarter, doubling the figure from the same period in 2022.
- The company concluded 2023 with 67,317 employees, a 22% reduction from the start of the year as part of its “Year of Efficiency” initiative.
Meta stock has shown resilience, gaining 14% year-to-date, building on last year’s remarkable 194% surge. In January, the company rejoined the trillion-dollar market capitalization club, solidifying its position among tech giants. Meta Platforms maintains a prominent presence on the IBD 50 list of top growth stocks and the leaders list of the IBD Leaderboard premium stock-ideas service. With a Relative Strength Rating of 96 and a perfect 99 IBD Composite Rating, Meta Platforms continues to demonstrate strength across various technical and fundamental metrics, outperforming 96% of all stocks in the past 12 months.
Meta stock skyrockets as Facebook parent company announces buybacks https://t.co/WZWYv0jNwq | @FastCompany #Meta #Stock #Buybacks #Facebook pic.twitter.com/8sLdMTXGnB
— Inspired Money Makers (@inspiredmoneyfm) February 2, 2023