Meta stock jumps 20% after earnings in biggest market-cap jump in stock market history

Meta stock jumps 20% after earnings in biggest market-cap jump in stock market history

On Friday, Meta Platforms’ (META) stock experienced a substantial surge, skyrocketing by more than 20% following the release of its quarterly earnings report, which exceeded expectations. The company’s optimistic guidance and the announcement of new initiatives aimed at enhancing shareholder returns further contributed to the upward momentum.

This surge resulted in Meta adding nearly $200 billion to its market capitalization, marking a notable achievement in stock market history as reported by Bloomberg data. Meta’s shares were trading at approximately $475 on Friday, a remarkable contrast to its low point of $90 witnessed in 2022. Currently, Meta’s market capitalization exceeds $1.2 trillion, reflecting the significant investor confidence in the company’s performance and future prospects.

During the fourth quarter, Meta reported adjusted earnings per share (EPS) of $5.33 on revenue totaling $40.11 billion. These figures surpassed analysts’ expectations, which had anticipated an adjusted EPS of $4.94 on revenue of $39.01 billion, according to Bloomberg consensus data. Notably, Meta had reported revenue of $32.2 billion during the same quarter the previous year, highlighting substantial growth over the intervening period.

In addition to its robust financial performance, Meta announced strategic measures to enhance shareholder value. The company revealed plans to increase its stock buyback authorization by $50 billion and introduced a quarterly dividend of $0.50 per share. These initiatives underscore Meta’s commitment to rewarding its shareholders and optimizing capital allocation strategies.

Looking ahead, Meta provided a bullish outlook for the current quarter, anticipating revenue to range between $34.6 billion and $37 billion. This projection surpassed analysts’ expectations, which had forecasted revenues totaling $33.6 billion. The optimistic guidance further solidified investor confidence in Meta’s ability to sustain growth and deliver value in the future.