Meta Reports Best Earnings In Two Years

Facebook parent Meta Platforms posted its best quarterly sales growth in more than two years and initiated its first-ever dividend, a testament to its investments in artificial intelligence that have made targeted ads smarter.

The Wall Street Journal reports the strong results come despite regulatory challenges and child-safety concerns. At a Senate hearing this week, Chief Executive Mark Zuckerberg told parents whose children were harmed by social media that he was sorry for their suffering, but he didn’t say whether Meta played a role in causing harm to children.

Meta said Thursday that sales increased to $40.11 billion in the three months through December, up 25% compared with the year-earlier period. The company also announced a $50 billion increase in its share-buyback authorization. In the third quarter of 2023, Meta reported record revenue of $34.15 billion, up 23%.

The latest results for Meta and other tech giants show strength across the industry as companies benefit from interest in AI and resurgent spending on everything from digital ads to gadgets. Companies have emerged leaner and more profitable after slashing jobs and other costs during the post pandemic tech slump that started in 2021, helping send tech stocks soaring over the past year.

“Being a leaner company is helping us execute better and faster, and we will continue to carry these values forward as a permanent part of how we operate,” Zuckerberg said Thursday on a call with analysts.

Meta said Thursday that it would pay a cash dividend for the first time in company history. The dividend will be paid at 50 cents a share.