Facebook owner Meta surges 16% to a record high
Meta stock is now up more than 65% from the lows in October last year, driven 19% higher on from earnings published for the second quarter.
That comes as Facebook looks to celebrate 20 years since Mark Zuckerberg and four friends created the social media giant in a bedroom on the Harvard campus. But, as IGTV’s Jeremy Naylor explains all this comes as Zuckerberg, along with other social media chiefs, are accused of having blood on their hands in their refusal to spend the money reportedly necessary to help clamp down on child abuse allegations.
(AI Video Summary)
Meta
Shares of Meta, the parent company of Facebook, soared by over 16% after the company released its latest financial reports, which surpassed the predictions of experts. Meta's earnings per share came in at $5.33, surpassing the expected amount of around $5. Additionally, the company's revenue reached $40.1 billion, outperforming the projected $39 billion. These impressive results, along with Meta's announcement of its first-ever dividend and authorization of $50 billion in share repurchases, boosted the confidence of investors in Meta's future.
The remarkable increase in Meta's shares was evident throughout all trading sessions on the IT platform. This growth was depicted by a marabouzou candlestick pattern, which signifies a strong upward movement and indicates a bullish trend with minimal selling pressure. The upward momentum continued the next day, with further gains observed during the morning sessions on the IT platform. Overall, the stock experienced a total gain of approximately 19% from the point at which the positive earnings reports were released after the market closed.
Mark Zuckerberg
It is interesting to note that these impressive financial results and subsequent share price increase occurred amidst recent criticism aimed at social media platforms, including Meta. Executives of social media companies, such as Meta's CEO Mark Zuckerberg, faced accusations of not doing enough to eliminate child abuse on their platforms. However, despite these concerns, investors chose to focus on Meta's strong earnings and displayed confidence in the company's potential for growth.
In summary, Meta's stock experienced a significant surge after surpassing analysts' expectations in terms of earnings and revenue. Additionally, the announcement of Meta's first dividend and authorization of share repurchases contributed to increased investor confidence. Notwithstanding recent criticism surrounding child abuse on social media platforms, including Meta's, investors maintained an optimistic outlook regarding the company's future growth prospects.
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