Stock market – Meta shares soar 13% after announcement of 2023 results

The Meta stock, parent company of Facebook, experienced a spectacular surge on the stock market on Wednesday. This, after publishing financial results above market expectations for the 4th quarter of 2023. The stock climbed 13%, adding more than $130 billion to the group’s market capitalization in just 15 minutes.

Reassuring results for Meta

For the 4th quarter of 2023, Meta delivered earnings per share of $3.67, well above analysts’ consensus of $2.70. Turnover stood at $36.2 billion, up 4% year-on-year.

These figures reassured investors about the financial health of the group, whose stock price had been at half mast for many months. Meta had notably suffered from Apple’s privacy policy changes and increased competition from TikTok.

Now with a valuation of more than $1.1 trillion, Meta officially joins the very exclusive club of the 7 largest market capitalizations in the world, nicknamed the “Magnificent 7”.

But cost reduction efforts and the development of new growth drivers, such as the metaverse, seem to be bearing fruit. The number of monthly active users also increased to 3.74 billion.

A massive share buyback program on the stock market

Following this publication, Meta announced the payment of the first dividend quarterly in its history, of $0.50 per share. Above all, the group will undertake a huge share buyback program of $50 billion.

This maneuver, which reduces the number of shares in circulation on the stock market, generally has a very positive effect on the price. It also reflects Meta’s confidence in its financial strength and long-term prospects.

Thanks to these announcements, Meta stock soared from $56 to $143 per share on Wednesday. Its stock market capitalization now exceeds $1.1 trillion, making Meta the 7th largest listed company in the world.

By significantly beating market forecasts, Meta reassured investors of its ability to bounce back despite the challenges facing the group. The announcement of a massive share buyback program amplified market enthusiasm. Driven by this positive dynamic, Meta’s stock price could continue its spectacular recovery in the coming weeks after months of depression.