After reducing its workforce by about 21,000 and refocusing priorities, Meta's stock saw a nearly threefold increase in 2023. The introduction of dividends and an additional $50 billion in share buybacks is expected to attract more investor support. However, the company is facing legal issues, with several states suing Meta for allegedly designing addictive features on Instagram and Facebook that target children.
Key takeaways:
- Meta Platforms Inc. has announced its first dividend for investors, with CEO Mark Zuckerberg set to receive approximately $700 million per year.
- The company's decision to initiate dividend payments indicates its perspective on its growth potential, despite facing regulatory challenges affecting its acquisition strategies.
- Following a workforce reduction and a refocusing of priorities, Meta's stock experienced a significant increase in 2023. The introduction of dividends and an additional $50 billion in share buybacks is expected to attract more investor support.
- Zuckerberg recently testified before the Senate Judiciary Committee's hearing on online child safety, amidst lawsuits from several states alleging that Meta deliberately designs addictive features on Instagram and Facebook for children.