Meta +15%, Amazon +7%, Apple -3%
Just a day before Meta Platforms released its financial results, its CEO, Mark Zuckerberg, was grilled during a Senate hearing. Zuckerberg was accused of having 'blood on his hands' because the senators believed that Meta Platforms had not done enough to safeguard children through the use of social media. He was made to publicly apologize to the parents, and he did so.
It seemed like a dent in Meta's reputation, but Wall Street couldn't care less. Meta's share price jumped 15% during after-market hours after reporting a year-over-year (YoY) revenue growth of 25% and a tripling of its net profit in 4Q 2023. It even announced a $50 billion share buyback and the payment of its first-ever dividend.
The remarkable turnaround of Meta Platforms continues. Ad revenue recovery has been robust, and its revenue has continued to accelerate since the first quarter of 2023.
Credit must also be given to Zuckerberg, as his year of efficiency in 2023 proved successful, resulting in an 8% reduction in expenses in 4Q 2023 and delivering shareholders a substantial net profit margin of 43%.
This is a stock where the morals and profit motives of an investor may clash. On one hand, social media may not have done enough to protect minors, and personally, I encounter many scammers running ads on Facebook. However, it is the openness of the platform that attracts advertisers who can target users and generate revenue and profits. Ultimately, it becomes a personal choice to make whether Meta is a worthy stock in one's portfolio.
Amazon is another Big Tech stock that has delivered impressive results. Revenue has increased year-over-year across all segments. Particularly noteworthy are the third-party marketplace and advertising revenue, which continue to be the main drivers of growth, with both growing by more than 20%.
