Meta Platforms Inc (META.O) experienced a significant increase in its share prices, rising by nearly 20% in pre-market trading. This rise was a result of Facebook’s decision to reduce its spending forecast and increase its stock buyback plan by $40 billion. The company is expected to see an increase in its market value by $75 billion, potentially resulting in its best day in a decade if the gains remain stable.
The stock surge of Meta Platforms Inc has also caused a rally in the shares of other major companies, such as Amazon.com (AMZN.O), Apple Inc (AAPL.O), and Alphabet Inc (GOOGL.O), all of which have a market value exceeding $1 trillion and are set to release their earnings after market close.
Meta’s recent decision to control its costs represents a significant change for the company, which has previously invested billions of dollars to bring its vision of a futuristic metaverse to life, despite facing challenges such as intense competition and a weak advertising market.
At least 19 analysts have raised their price targets for the stock, citing the combination of reduced costs, positive revenue growth, and share buybacks as the driving factors for increasing earnings per share.
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