Meta declares first dividend, shares spike over 14%, CEO Mark Zuckerberg to get $700mn fat payout check

Meta Platforms, the corporate entity overseeing popular social media networks Facebook and Instagram, has disclosed a positive financial outlook for the December quarter, buoyed by robust advertising revenues and the initiation of its inaugural dividend distribution. The company’s earnings per share surged by over 200 per cent, reaching $14 billion or $5.33 per share, surpassing projections of $4.97 per share, as per data from the London Stock Exchange Group. Just days prior to the 20th anniversary of its flagship social network, Facebook, Meta Platforms announced a dividend of 50 cents per share and unveiled plans for an additional $50 billion in share repurchases. Mark Zuckerberg, the Chief Executive Officer of Meta Platforms Inc., is positioned to receive an annual payout of approximately $700 million from the company’s maiden dividend to investors. This move by Meta to distribute dividends signifies its perspective on growth potential. Traditionally, rapidly expanding tech firms opt against dividends, preferring to reinvest earnings in product development or high-value acquisitions. Despite Meta’s substantial investments in artificial intelligence, regulatory challenges have constrained its acquisition opportunities. Following the dividend declaration, Meta’s market valuation soared by over $140 billion, a figure more than five times the entire market capitalization of its smaller social media counterpart, Snap Inc. In a prepared statement, Meta CEO Mark Zuckerberg highlighted the progress made in advancing artificial intelligence and the metaverse, emphasizing the company’s commitment to its visionary goals. Meta has projected a first-quarter revenue between $34.5 billion and $37 billion, surpassing Wall Street predictions of $33.8 billion. The company anticipates total expenses for the full year of 2024 to remain consistent at $94 billion to $99 billion. After Meta implemented workforce reductions, letting go of approximately 21,000 employees while streamlining its priorities, the company’s stock nearly tripled in 2023. The announcement of the dividend and an additional $50 billion in share repurchases aims to garner further investor support for Zuckerberg’s ambitious ventures in artificial intelligence and the metaverse. The share price of Meta has been steadily recovering from a downturn in 2022, which had previously eroded more than three-quarters of the company’s valuation. The rebound is attributed to revived user growth and increased digital advertising sales. Mark Zuckerberg’s total compensation for 2022 amounted to $27.1 million, inclusive of private security expenses and a nominal base salary of $1, as per filings. Executive compensation details for the previous year are yet to be disclosed by Meta. (With inputs from agencies)