Meta's Stock Soars 14% on Big Revenue and Earnings Gains, Strong Outlook

Dow Jones02-02

Meta Q4 Earnings Conference Call

Facebook parent Meta Platforms Inc.'s stock soared 14% after hours Thursday on a surge in quarterly digital-advertising sales, and big beats on revenue and earnings.

The company's board of directors also declared their first cash dividend of 50 cents a share, payable March 26.

Meta (META) reported fiscal fourth-quarter net income of $14.02 billion, or $5.33 a share, compared with net income of $4.65 billion, or $1.76 a share, in the same quarter a year earlier.

Revenue expanded 25% to $40.11 billion from $32.2 billion in the year-ago quarter.

Analysts surveyed by FactSet had expected on average net income of $4.82 a share on revenue of $39.1 billion.

A bounce-back in advertising, the continued monetization of Instagram and Reels, and AI-fueled ad-targeting and measurement contributed to the quarter's performance. Meta's exemplary performance comes two days after a similarly strong quarter from Google parent Alphabet Inc. $(GOOGL)$ $(GOOG)$.

"We had a good quarter as our community and business continue to grow," Meta Chief Executive Mark Zuckerberg said in a statement announcing the results. "We've made a lot of progress on our vision for advancing AI and the metaverse."

Meta executives forecast first-quarter revenue of between $34.5 billion and $37 billion, while analysts on average were expecting $33.9 billion, according to FactSet.

Facebook had 2.11 billion daily active users, up 6% from a year ago, and monthly active users improved 3% to 3.07 billion.

The company's year of efficiency also seems to have paid off: Headcount was slashed 22% to 67,317 in 2023.

Meta's stock improved 1.2% to $394.78 in Thursday's regular session. The stock has catapulted 109% over the past 12 months, while the broader S&P 500 index SPX has increased 17%.

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Comments

  • starry123
    02-02
    starry123
    😁😁😁😁😁😜😜😜😜😜😃😃😃😃👍👍👍
  • Tiyenger
    02-02
    Tiyenger
    One of my favourite stocks..so awesome!
  • Song Di
    02-02
    Song Di
    Big bubble forming?
  • Daphlin
    02-02
    Daphlin
    Amazing
  • nywles
    02-02
    nywles
    Thanks 
  • Jmw148
    02-02
    Jmw148
    WOW!🤩 
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