Value Gets Delivered
Meta Platforms (META) took markets for a ride when the company announced a $0.50 quarterly dividend along with a $50 billion share buyback program. Although the company still needs to deliver on its virtual reality (VR) objectives, this is definitely the earnings report that markets were awaiting.
META beat both earnings and revenue by 7.23% and 2.4% respectively as the company’s layoffs proved fruitful to raise profit margins. The announced share buyback program is also a great tool to return some value to shareholders but the real gains were made in the dividend announcement.
The quarterly dividend has pushed META into the same group as AAPL and MSFT among FAANG+ stocks that pay a dividend. The news was so surprising that META surged after hours late yesterday and again throughout today’s trading to post a 20%+ gain. META’s market capitalization now sits at $1.22 trillion on the back of one of the largest 1 day value increases among companies with a valuation of $1 trillion or more.