As Facebook gears up to celebrate its 20th anniversary under its new name Meta, the company made a splash in the financial world. Meta announced a whopping $50 billion in additional share repurchases, alongside a quarterly dividend of 50 cents per share. But the real fireworks happened the next day when Meta experienced an unprecedented surge in stock market value, skyrocketing by a staggering $196 billion. This remarkable feat marked the largest single-day gain ever seen on Wall Street.
In the wake of this monumental surge, Meta’s stock soared by 20.3%, achieving its most significant one-day percentage increase in a year and the third-largest since its debut on Wall Street in 2012. As a result, Meta’s market capitalization now stands tall at over $1.22 trillion.
This surge in stock value brought immense fortune to Meta’s CEO and co-founder, Mark Zuckerberg, who saw a staggering $28 billion increase in paper wealth. With this windfall, Zuckerberg’s net worth soared to a towering $165 billion, surpassing even that of Microsoft’s co-founder, Bill Gates.
According to reports, Zuckerberg stands to gain approximately $174 million in cash when Meta distributes its first-ever dividend in March. This move, typically associated with established, slow-growth companies, signifies Meta’s desire to enhance its reputation and credibility in the financial world. However, some analysts, like Dan Coatsworth from AJ Bell, view this payout as more symbolic than substantial.
Friday’s surge in Meta’s market capitalization eclipsed the previous record set by Amazon in 2022 when its market value surged by $190 billion following a stellar quarterly report. Interestingly, just a day before this historic gain, Meta suffered a massive loss of over $200 billion in value, marking the largest single-day loss in US stock market history, due to a disappointing forecast.
Meta’s dividend plan translates into a hefty payout for Zuckerberg, who holds approximately 350 million Meta Class A and Class B shares. This means the Facebook co-founder could rake in around $175 million every quarter.
The optimism surrounding advancements in artificial intelligence has also played a significant role in the stock market success of companies like Meta, Nvidia, Microsoft, and Broadcom. This sentiment contributed to a 24% rally in the S&P 500 last year, with Meta now boasting a 35% increase in stock value in 2024 alone.
