Meta Platforms Inc (NASDAQ:META) stock surges 20.13% (As on February 2, 11:19:26 AM UTC-4, Source: Google Finance) after the company announced plans to buy back an additional $50 billion in shares and issue its first-ever quarterly dividend of 50 cents per share as the company works to convince investors that his costly bets on the metaverse and artificial intelligence will pay off. Meta executives had cautioned in October that “global economic uncertainties” could weigh on revenue at the end of last year, typically the most lucrative quarter, even as the company laid out an expensive spending plan for 2024. However, Meta’s net income more than tripled to $14 billion, from $4.65 billion one year earlier.

META in the fourth quarter of FY 23 has reported the adjusted earnings per share of $5.33, beating the analysts’ estimates for the adjusted earnings per share of $4.96. The company had reported the adjusted revenue growth of 35.9 percent to $40.1 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $39 billion. Meta’s operating expenses fell by 8% from a year earlier, to $23.73 billion, while its operating margin doubled to 41%. Those are clear signs that the company’s cost-cutting measures introduced over the last year are having the desired effect of improving its profitability. The company reported that it now has 2.11 billion daily active users, ahead of the 2.08 billion expected, and 3.07 billion monthly active users, versus the Street’s forecast of 3.06 billion. Meta said its average revenue per user came to $13.12 at the end of the quarter, versus the $12.81 forecast.

Revenue is expected to be as much as $37 billion in the three months ending in March, Meta said. Analysts were looking for $33.6 billion, according to estimates compiled by Bloomberg.  The company also said it expects operating losses to “increase meaningfully” at Reality Labs, the division that makes smart glasses and headsets, as it continues to invest in product development. On the bright side, the unit crossed $1 billion in quarterly revenue for the first time. The company’s ad business is also looking healthy, thanks in part to Chinese e-commerce firms that have boosted spending in order to reach global audiences. Chinese firms including Temu, operated by WhaleCo Inc., and Shein LLC, have reportedly been spending millions on Facebook and Instagram ads, and helped to ensure that China-based advertisers accounted for 10% of the company’s total ad sales.