Meta runs on Wall Street with tripled profits and first dividend. Apple and Amazon exceed expectations
The company that controls Facebook will pay a $0.50 coupon per share and flies on the stock exchange. Solid performance also for Seattle and Cupertino biggies, but disappointing in China
4' min read
Key points
4' min read
Big Tech posts solid balance sheets. For Meta, which posted the highest quarterly turnover growth in two years and a surge in profits, the first dividend date was also triggered and the share price soared 14.2 per cent after the market. Apple and Amazon reported sales and profits above expectations, although in Apple's case the stock came under pressure due to weakness in China and concerns about the outlook. Amazon, on the other hand, has made significant gains on the stock market in recent hours.
Meta has risen to prominence by announcing even more than the accounts: it will detach the first coupon in its history, amounting to $0.50 per share, returning capital to shareholders despite billions of dollars of investment in new infrastructure to support its bet on artificial intelligence. The dividend will be paid on 26 March. Thanks to a cash hoard that swelled to $65.4 billion from $40.7 billion a year earlier, a new $50 billion share buyback plan was also decided.
Meta, revenue +25%
Facebook's parent company reported profits more than tripled to $14.02 billion in Q4 2023. Earnings per share were $5.33. The results exceeded Wall Street's expectations: the average estimate of analysts surveyed by Zacks Investment Research expected earnings to be limited to $4.83 per share.
The social media company reported revenue jumped 25 per cent to $40.11 billion in the period under review, also exceeding Wall Street's forecast of $38.99 billion. For the current quarter, which ends in March, Meta Platforms said it expects revenues of between $34.5 billion and $37 billion. Daily active media users for Facebook alone were 2.11 billion compared to 2.08 billion expected and monthly active media users 3.07 billion compared to 3.06 billion. Also significant for the performance was a reduction in expenses of 8 per cent.
A particular help to the accounts came from the use of artificial intelligence technologies, in which it invested heavily and which helped to improve the targeting of advertising. And in this way, to overcome privacy restrictions introduced by Apple on its devices and which had damaged the collection.
