From Nasdaq:

Meta’s (META.O) stock surged 17% in premarket trading after announcing its first dividend and delivering strong results. This sent a strong signal that Meta’s investments in “metaverse” technologies and AI infrastructure would offer attractive returns.

The company authorized an additional $50 billion in share repurchases and set a quarterly dividend of 50 cents per share.

Meta’s Q4 results revealed robust ad sales, a rebound in user growth, and a forecasted Q1 revenue above analysts’ estimates. The social media giant has been aggressively focusing on cost-cutting and efficiency in 2023.

Mark Zuckerberg, the CEO of Meta, stands to receive a $175 million payout every quarter due to his ownership of 350 million Meta Class A and Class B shares.

Meta is also set to gain $173 billion in market value, based on a premarket share price of $462.08.

The company’s shares are trading at 21.29 times expected earnings, lining up favorably against competitors like Snap, Alphabet, Amazon, and Microsoft. Investors respond favorably to the buybacks and dividends offered, seeing them as a strategic move driven by Meta’s growth vision.



Read more: Meta soars after first-ever dividend plan, ‘Year of Efficiency’ pays off