Meta’s focus on efficiency throughout the year yielded significant results, greatly rewarding investors and prompting a surge in Meta stock value. The tech giant reported a remarkable increase in profit, surpassing $14 billion, marking a growth of over 200% compared to the previous year. Additionally, quarterly sales exceeded $40 billion, reflecting a 25% increase from the same period last year.
In a move to further appease investors, Meta announced its inaugural cash dividend of $0.50 per share, scheduled for payment on March 26 to shareholders of record as of February 22. This announcement, coupled with a $50 billion share buyback program, contributed to a remarkable 14% surge in Meta’s stock during after-hours trading on Thursday.
The successful financial report capped off Meta’s self-proclaimed “year of efficiency,” which CEO Mark Zuckerberg initiated in February of the previous year. This strategic turnaround involved cost-cutting measures, including layoffs, leading to a remarkable reversal of revenue declines and share price weaknesses witnessed in prior periods.
For the full year of 2023, Meta reported a 69% year-over-year increase in profits, totaling $39 billion. As of the latest reporting period, Meta’s stock had gained an impressive 109% since the same time the previous year.
CEO Mark Zuckerberg expressed gratitude to employees, partners, shareholders, and the community for their contributions to Meta’s success, highlighting the company’s renewed growth trajectory and operational efficiency.
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The positive financial report comes shortly after Zuckerberg’s appearance before the US Senate Judiciary Committee to address concerns regarding the impact of Meta’s platforms on young users. During the hearing, Zuckerberg issued a rare apology to parents whose children had experienced harm on Facebook and Instagram.
Meta’s Facebook platform continued to show growth, with daily active users reaching over 2.1 billion, although Meta indicated it would no longer report Facebook user numbers, emphasizing its focus on the broader family of apps.
Looking ahead, Meta plans to prioritize investments in artificial intelligence (AI), with projected capital expenditures of $30 billion to $37 billion for the year. This increased spending reflects Meta’s commitment to AI research and product development, as well as its ambition to build artificial general intelligence (AGI).
Despite losses in its Reality Labs unit, Meta remains committed to investments in virtual and augmented reality technologies, aligning with its vision for the metaverse.
Overall, Meta’s robust financial performance and strategic initiatives position the company for continued growth and innovation in the evolving tech landscape.
