Published: February 4, 2024 11:35 am
Author: RT
The company’s capitalization surged by 20% on Friday following a blockbuster earnings report
US tech giant Meta Platforms, the parent company of Facebook and Instagram, has posted its largest-ever one-day jump in market value on Friday, trading data showed.
Meta stock rose 20.32% to an all-time high of $474.99 per share. The company gained roughly $200 billion in market capitalization, which topped $1.22 trillion.
The increase in Meta’s market cap was the biggest single-session market value addition in Wall Street history, surpassing the previous record set by Amazon, which saw a $190-billion surge on February 4, 2022.
Meta’s gains came after it posted blockbuster earnings results earlier this week. Its reported fourth-quarter revenue of $40.1 billion, up 25% year-over-year. During a post-earnings conference call Meta CEO Mark Zuckerberg said the firm has become “leaner” following its “year of efficiency,” during which it laid off thousands of employees and shut down some offices, among other cost-cutting measures.
On Thursday the company also authorized a $50-billion share buyback program and announced its first-ever quarterly dividend payout of 50 cents per share, which, analysts say, also helped boost its stock.
READ MORE: Apple no longer world’s most valuable company
Market experts note that while the Meta dividend is small, compared to some other firms, the move could attract more investors to its stock.
“Paying a dividend suggests the company wants to reboot its reputation and be taken more seriously,” Dan Coatsworth, an investment analyst at AJ Bell, told Reuters, commenting on Meta’s announcement.
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