Zuckerberg's Victory on Wall Street Following Congressional Scrutiny

Mark Zuckerberg's company, Meta, had a successful day on Wall Street despite facing criticism in Washington. The company reported positive news to investors, with quarterly profits tripled to over $14 billion, a significant increase in users, lower costs, and higher ad sales. Even the virtual reality division, which has been mocked in the past, reached a milestone by generating $1 billion in revenue. Meta announced its first-ever dividend, providing a payout of 50 cents per share to shareholders. The company stated it was in a strong financial position and planned to continue investing in the business while making regular dividend payments in the future. As a result, Meta's shares soared over 12% in after-hours trading, reaching new record highs. Analysts regarded the decision to offer a dividend as a sign of maturity as the company approaches its 20th anniversary. This move marks a shift in investor sentiment since 2022 when the company faced challenges and criticism. Other major tech companies also experienced positive performance. Amazon's sales increased by 14% during the September-December period, while Apple saw its revenue grow for the first time in a year. However, Meta's performance was the most astonishing, occurring just after facing intense scrutiny in Washington, where senators accused the company of harm and demanded apologies from Mark Zuckerberg. During the earnings call with analysts, Meta acknowledged the regulatory challenges it faces that could significantly impact its business but did not dwell on the topic for long. Nevertheless, despite concerns, people and advertisers continue to engage with Meta's platforms. In December, nearly 3.2 billion people were active on Meta's platforms daily, representing an 8% YoY increase. Furthermore, revenue in the September-December period rose by 25% to surpass $40 billion. Meta's cost-cutting measures, including job reductions, led to an 8% decrease in expenses, with headcount down by 22%. Analysts praised Meta for exceeding expectations and credited the effective use of artificial intelligence in enhancing advertising. Overall, Meta's strong Q4 performance and approaching 20th anniversary set the stage for a promising 2023.