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Meta's $200 Billion Surge Is Biggest In Stock-Market History - Slashdot

Feb 02, 2024 - meta.slashdot.org
Meta, formerly known as Facebook, is set to become Wall Street's top comeback kid after suffering the largest market value destruction in stock-market history a few years ago. The company's stock rose by up to 21% on Friday, potentially adding around $200 billion to its market capitalization, which would be the largest single-session market value addition, surpassing the gains made by Apple and Amazon in 2022. This follows an impressive quarterly earnings report, with the company focusing on reducing costs and increasing profits.

The company has also announced plans for a $50 billion stock buyback and its first quarterly dividend, indicating its financial stability and giving investors a reason to stay. Despite making significant cost cuts, Meta continues to invest heavily in artificial intelligence advancements, particularly in generative AI and other technologies that support its social media products and ad targeting. The company reduced its headcount by 22% in 2023, but its AI pipeline remains robust, with more tools expected to launch and scale in 2024.

Key takeaways:

  • Meta is on track to become Wall Street's top comeback kid, with its stock rising as much as 21% on Friday, potentially adding roughly $200 billion to its market capitalization.
  • The company has impressed shareholders with its recent quarterly earnings report, focusing on reducing costs and increasing profits.
  • Meta has announced plans for a $50 billion stock buyback and its first quarterly dividend, signaling to investors that it has money to spare.
  • Despite making significant cost cuts, Meta continues to invest heavily in artificial intelligence advancements, particularly in generative AI and technologies to support its social media products and ad targeting.
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