Meta posted much better than expected earning on February 2nd. It lead to a massive stock jump of over 16% to start the day. In their earnings statement they reported an EPS of $5.33 and revenue of $40.11 billion. Both were significantly higher than analysts projected. This was an 8 billion dollar jump in revenue from this time last year witch was at $32.2 billion. Meta also paid out a quarterly dividend of $0.50 and were authorized to buy back $50 billion in stock. However it is not all good at Meta as the "Meta Reality Labs" division continues to lose money for the company. This quarter the division lost $4.65 billion. With Apple also releasing their Vision Pro headset, Meta could face some competition but also we could see an increase in consumer interest in AR/VR headsets. It will be interesting to see how Meta stock continues to react to this report in the coming future.
4 comments:
META’S bold move to pay dividends at $0.50 per share to shareholders (being compared to Apple's dividends), considering their recent layoff of more than 10,000 employees, signals to me that they are making efforts to rebuild investor trust.
How does Meta plan to deal with losses in the 'Meta Reality Labs' division despite their strong earnings, and how do they aim to stay competitive in the AR/VR market, especially with Apple's new Vision Pro headset?
How will Meta be able to deal with the losses from Meta Reality Labs? How far into the future do they expect it to turn a profit?
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