Meta’s stock soared more than 14% to reach a historic peak of $451 after the market closed, propelling its market capitalization by $148 billion to $1.16 trillion. This surge followed Meta’s announcement of its inaugural dividend, marking a significant financial milestone for the parent company of Facebook.
Big Tech giants Meta Platforms and Amazon.com gained a combined $280 billion in market value after strong quarterly results. Amazon’s stock rose 8% on solid holiday sales, putting its market cap at $1.78 trillion.
In its post-report update, Meta announced that its capital expenditures for 2024 are expected to range between $30 billion and $37 billion, marking a $2 billion increase from its initial plan. This boost is attributed to investments in servers, including those designated for AI applications.
Following the news, chipmakers Nvidia and Advanced Micro Devices each saw an almost 2% rise in extended trading, while server maker Super Micro Computer experienced a 2% increase.
The surge in Meta’s market capitalization during extended trading was more than 5 times the entire $26 billion value of its smaller social media competitor, Snap Inc.