Meta platforms have achieved an unprecedented milestone, recording the largest single-day gain in stock market value in Wall Street history. The parent company of Facebook added a staggering $196 billion following the announcement of its inaugural dividend and robust financial results.
During the session, Meta’s stock soared by 20.3%, marking its most significant one-day percentage increase in a year and the third-largest since its debut on Wall Street in 2012. The company’s current stock market value has surpassed $1.22 trillion.
In a move days before Facebook’s 20th anniversary, Meta authorised an additional $50 billion in share repurchases and declared a quarterly dividend of 50 cents per share. This dividend, although commonly associated with mature, slow-growth companies, positions Meta alongside tech giants like Apple, Microsoft, and Nvidia, all of which offer dividends.
The surge in Meta’s market capitalisation on Friday surpassed the previous record set by Amazon on February 4, 2022, when its market value surged by $190 billion following an outstanding quarterly report.
Interestingly, the historic gain comes a day after Meta suffered its largest single-day loss in U.S. stock market history, losing over $200 billion in value after issuing a disappointing forecast.
Meta’s dividend plan holds substantial benefits for CEO Mark Zuckerberg, who owns approximately 350 million Meta Class A and Class B shares, potentially earning him around $175 million every quarter.
Optimism surrounding the potential of artificial intelligence contributed to a 24% rally in the S&P 500 last year, with Meta, Nvidia, Microsoft, and Broadcom reaching record highs. With Friday’s remarkable gain, Meta has now surged by 35% in 2024, showcasing its resilience and ability to bounce back from market fluctuations.