Meta's shares soar following exceptional Q4 results and a promise of first-ever dividends
Meta's shares, attached to Facebook, Instagram, and WhatsApp, experienced a noteworthy increase, with shares climbing by 14%. This rise has been attributed to a combination of positive factors contributing to investor optimism.
Mark Zuckerberg is on a high as Facebook continues to grow
Firstly, the company's sales saw a 25% increase year on year (from £23.4 billion), whilst expenditures decreased by 8% (to £17.2 billion). The company's revenue hit £29.1 billion, and the number of daily active users reached 2.11 billion.
This illustrates that the fourth-quarter results have exceeded projections. The operations branch noticed more than double the previous increase, achieving a profitability level of 41%. This increase in profitability was highlighted by CNBC.
A first in the company's history: Dividends will be distributed
A further cause for celebration is the distribution of the first dividend in the company's history. Each dividend will be equivalent to 37p per share, with the payout scheduled for 26th March.
Mark Zuckerberg, the company's founder, acknowledged the success of the past quarter was due to the platform's continued development.
Significant developments have been made in the pursuit of our vision for artificial intelligence and the metaverse. Investments in AI will continue - he said.
Meta predicts continued growth
Meta is anticipating further growth. In the first quarter, revenues are projected to reach £26.9 billion, which reflects a significant increase compared to the £25.1 billion result from the previous quarter.
Susan Li, the company's finance director, stated that the most significant impact on these positive results came from increased revenue in e-commerce, entertainment, and gaming sectors. Layoffs also contributed to the successful results, with the current workforce standing at over 67,000, 22% lower than the previous year.
