Meta's Inaugural Dividend Sends Shares Soaring by $140 Billion
Just days ahead of Facebook's 20th anniversary, Meta Platforms has issued its inaugural dividend, revealing impressive financial results that surpassed expectations, driven by robust advertising sales during the holiday shopping season.
Following the announcement, Meta's shares experienced a remarkable surge of over 14% in after-hours trading, propelling the company's market valuation to soar by more than $140 billion.
This surge marked a continuation of Meta's substantial recovery, culminating in the company achieving record highs in recent weeks, a feat not seen in over two years.
The after-hours gains alone surpassed the entire market value of its social media competitor, Snap Inc, by more than fivefold.
As a trailblazer among the tech sector's original unicorns, Meta disclosed that its dividend would amount to 50 cents per share.
Additionally, the company revealed its authorization of an extra $50 billion for share repurchases.
This move positions Meta as a trailblazer among its internet juggernaut peers, becoming the first in its generation of tech giants to issue a dividend.
This milestone marks a significant development in a tech sector that has been dominated by a select few companies for well over a decade.
Source: Katie Paul and Yuvraj Malik / Reuters