Meta overtakes Apple with largest single-day market cap gain
Meta Platforms Inc., the company behind Facebook, has made an unprecedented recovery, marking the largest single-day surge in stock market history, as reported by BNN Bloomberg.
With a US$197bn increase in market capitalization, Meta eclipsed the previous records set by Apple Inc. and Amazon.com Inc. in 2022. This remarkable achievement comes after the company experienced significant market value losses just a few years ago.
On Thursday, Meta impressed investors with a stellar quarterly earnings report, highlighting its focus on cost reduction and profit maximization. The company's shares skyrocketed by 20 percent on Friday, closing at an all-time high of US$474.99, thereby adding US$197bn to its market value. This surge is the biggest single-session market value addition in history, surpassing the US$190bn gains made by Apple and Amazon in 2022.
Analyst Brian Nowak from Morgan Stanley praised Meta for its "solid execution, faster growth, and increased capital structure efficiency," projecting a positive outlook for the company.
Meta's commitment to innovation, particularly in artificial intelligence (AI), remains strong. The company has announced significant investments in generative AI and other technologies to enhance its social media products and advertising capabilities.
In 2023, Meta reduced its workforce by 22 percent and announced a $50bn stock buyback program, along with its first quarterly dividend. These moves signal to investors that Meta is financially robust and committed to returning value to shareholders, even as it continues to aggressively invest in AI advancements.