After the bell on Thursday, social media behemoth Meta Platforms (META) disclosed fourth quarter profits that topped analyst projections on the top and bottom lines, with a positive outlook for the quarter and new shareholder return efforts.
Meta's fourth-quarter adjusted EPS was $5.33 on $40.11 billion in sales. Bloomberg average predicted $4.94 adjusted EPS on $39.01 billion in sales. Last quarter, the corporation earned $32.2 billion.
It also increased its stock repurchase authorization by $50 billion and started a $0.50 quarterly dividend. Meta expects revenue of $34.6 billion to $37 billion this quarter, above analysts' projections of $33.6 billion.
Meta shares rose almost 12% after hours on Thursday after the announcement. Meta exceeded expectations with $38.7 billion in fourth-quarter advertising sales. Facebook claimed 2.11 billion daily active users. Wall Street predicted 2.07 billion.
The average ad price declined 2% while ad impressions surged 21% over previous year. The corporation still struggles with Meta's Reality Labs. The division, which is responsible for implementing Zuckerberg's metaverse vision, lost $4.65 billion, up from $4.3 billion last year. The segment exceeded revenue projections with $1.07 billion vs $812 million.
The arrival of Apple's Vision Pro headset should boost customer interest in AR/VR headsets and Meta's Quest range. Investors have prioritized generative AI above Meta's Reality Labs. In an Instagram Reels post in January, Zuckerberg stated the company's long-term goal of developing open-source general AI.
Generative AI can think and learn like humans, but its definition is vague. Thus, it can comprehend several ideas rather than a single one. Meta forecasts its spending to hit $94 billion-$99 billion in 2024, with labor costs rising as it hires more technical staff for its AI drive.
Meta reported $3.45 billion in 2023 restructuring expenses, including severance and facility consolidation. On Dec. 31, 2023, the corporation had 67,317 employees, down 22% from the year before.
Meta shares have risen 121% in the past year, outpacing Apple (AAPL), Google (GOOG, GOOGL), Microsoft (MSFT), and Amazon (AMZN). The company's market valuation exceeded $1 trillion again in January.
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