This article was last updated on February 2, 2024
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Meta Spreads Wealth Among Shareholders
In an unprecedented move, Meta, the powerhouse behind Facebook, Instagram, and WhatsApp, is setting the stage to pay dividends to shareholders for the first time. The American technology stalwart, following a fruitful year with profits soaring over 35 billion euros, has declared that shareholders are set to receive slightly less than 50 cents per share. This remarkable financial yield comes on the heels of a challenging period for the tech mammoth. Citing the need for increased efficiency, Meta reduced its workforce by a fifth in 2023. Despite grappling with a sluggish advertising market in 2022, the California-based enterprise has managed to navigate the dire straits and emerge triumphant.
Announcement Spurs Excitement
The announcement of the forthcoming dividend payments has been greeted with widespread enthusiasm. In the wake of the news, Meta’s shares skyrocketed by 15 percent after trade hours, thereby boosting the company’s net value by an impressive 150 billion euros.
Dividend Payments: An Unorthodox Move In Tech
Meta’s decision to share a part of its profit with shareholders is a standout move in the tech landscape, where many other players opt against it. Tech behemoths such as Amazon and Google do not pay dividends to shareholders despite being profitable. Their justification? They need the funds to fuel their growth. On the other hand, companies like Apple and Microsoft have a history of sharing dividends with their shareholders.
Meta’s Future: More AI
Meta’s CEO Mark Zuckerberg also hinted at the company’s future strategy, revealing the plan to raise the stakes in the AI sector. With AI already serving as an integral part of their advertising machinery, Meta is set to leverage AI further. Advertising partners will soon have the option to let AI generate components of their ads, including texts and background imagery.
Company leadership faces US Senate
On a related note, Mark Zuckerberg found himself on the hot seat recently, having to face the US Senate for a hearing on child safety. The social media leaders were summoned, and Zuckerberg had to issue an apology to families of children who experienced mental health issues.
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