Meta stock rises, Mark Zuckerberg’s wealth surges by $28 billion

This is a dramatic reversal of fortune for Mark Zuckerberg

The Facebook co-founder’s net worth soared by $28.1 billion after Meta’s quarterly results far exceeded Wall Street expectations, sending its shares up about 20%. He is now worth $170.5 billion, making him the richest ever and surpassing Bill Gates to rank fourth on the Bloomberg Billionaires Index.

It’s a major comeback for Zuckerberg’s fortune, which fell below $35 billion in late 2022 only to soar in 2023 as tech stocks collapsed on inflation and rising interest rates. .

The upbeat results will benefit Zuckerberg in other ways as well: He will receive about $700 million a year in dividends from the social media giant’s first-ever dividend to investors.

Meta announced a quarterly cash dividend of 50 cents per share on Class A and Class B common stock beginning in March. Zuckerberg, who holds about 350 million shares, will pay about $175 million per quarter before taxes, according to data compiled by Bloomberg.

Meta Platforms Inc. CEO Mark Zuckerberg during a Senate Judiciary Committee hearing in Washington, DC, U.S., Wednesday, January 31, 2024. Congress is increasingly scrutinizing social media platforms as evidence mounts that overuse and the proliferation of harmful content can harm the mental health of teenagers.Photographer: Kent Nishimura/Bloomberg

Meta’s move to pay a dividend sends a signal about the company’s view of its growth potential. Typically, faster-growing technology companies eschew dividends and instead use earnings to develop new products or make expensive acquisitions. Although Meta has invested heavily in artificial intelligence projects, its acquisition prospects are shrinking in the face of regulatory opposition.

The stock nearly tripled in 2023 after Meta laid off about 21,000 employees and narrowed its priorities. A new dividend and an additional $50 billion in stock buybacks may win more patience from investors who have made Zuckerberg’s long-term bets on artificial intelligence and the Metaverse.

The documents show that Zuckerberg will receive a total compensation of $27.1 million in 2022, which includes private security expenses and a base salary of $1. Meta has not released executive compensation for last year.

A company spokesman declined to comment.