Meta Results, by Farhan Badami, Market Analyst at eToro
As Mark Zuckerberg faced intense questioning from lawmakers at a Senate Judiciary Committee hearing, his company was celebrating a remarkable year. Meta's revenue in the fourth quarter reached $40.1 billion, exceeding the expected $39.2 billion. In addition, its earnings per share exceeded expectations, standing at $5.33 compared to the expected $4.97.
Facebook's daily active users reached 2.11 billion, exceeding the expected 2.07 billion, surprising many who expected a decline in the popularity of its flagship application. Advertising revenue also exceeded expectations, driven by Chinese retailers increasing spending to reach users around the world.
It wasn't long ago that Meta saw revenue decline for three consecutive quarters in 2022. Now, it's safe to say that the tech powerhouse has undergone a notable turnaround, advancing AI and improving its advertising business.
Meta's recent financial achievements demonstrate its resilience and strong market position. This success has allowed the company to declare its inaugural quarterly dividend of $0.50 per share, as well as approve an additional $50 billion worth of share buybacks.
Following these results, Meta shares rose 13% after the market closed, translating into a staggering $130 billion gain. Consequently, it has consolidated its position as the seventh global company by market capitalization. Up nearly 400% from its 2022 low, the stock's extraordinary performance undeniably qualifies it as great.
This content is for informational and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is no indication of future results
