Meta's dividend lights up Wall Street and predicts a contagion effect
This weekend marks the 20th anniversary of Facebook, and it is undeniable that Meta, the company that has emerged from its success, has grown alongside its initial product and its founder Mark Zuckerberg.
Gone are the days of Zuckerberg’s cocky attitude and provocative style. Following his appearance before the US Congress and his apology to families affected by child sexual exploitation on social media platforms he created, the manager presented Meta’s 2023 results with a newfound sense of maturity.
The apology did not dampen the spirits for Zuck. The company delivered results that surpassed expectations and made a historic move by offering its first-ever dividend. Shareholders will receive a quarterly payment of $0.50 per share, resulting in approximately $175 million going into the company founder’s account. This milestone announcement sent the market into a frenzy.
As a result, Wall Street propelled Meta’s stock to reach record highs, with a 22% increase at the close of the trading day. This surge added $250 billion in market value to the company, equivalent to twice the value of Inditex.
It seems like only yesterday that Meta faced criticisms and setbacks, particularly after the metaverse fiasco. Zuckerberg’s public image was deteriorating, causing speculation and uncertainty. However, those concerns are a thing of the past. Meta has successfully positioned itself as a friendly face in the world of AI, embracing open source practices and shifting the narrative against competitors like TikTok. The market recognizes this shift. Beyond the temporary frenzy, the numbers speak for themselves: Meta’s shares have risen by nearly 40% this year and over 150% in the past 12 months.
Furthermore, virtual reality is back in the spotlight with Apple’s entry into the segment through their Vision Pro. This move has introduced competition, but Zuckerberg emphasized that it could also attract new consumers to virtual reality. Meta’s Quest 3, priced at 550 euros, remains a more affordable choice for the average family compared to Apple’s $3,500 product.
While Meta once again dominates the industry, the lessons learned from the Ukrainian conflict have not been forgotten. Cost control and prudent investment remain key messages to the market. With Zuckerberg’s movement gaining momentum, it is expected that Meta will continue to deliver dividends, joining the league of large technology companies that have expanded in size.