In a stunning display of success, tech giant Meta reported a profit growth of over 200% year-over-year to $14 billion for the three months ending in December. This exceeded the expectations of Wall Street analysts and sent the company's stock surging. Sales for the quarter also saw an impressive 25% growth from the previous year, reaching over $40 billion. To sweeten the deal for investors, Meta announced its first-ever cash dividend of $0.50 per share, to be paid out on March 26. Additionally, the company unveiled a $50 billion share buyback.

While these moves are seen as beneficial for investors, they have also faced criticism for potentially inflating the stock price without addressing employee needs or making improvements to the underlying business. However, Meta stated its intention to pay a cash dividend on a quarterly basis going forward.

This positive news caused Meta's shares to soar more than 14% in after-hours trading on Thursday. The company's stock has gained an impressive 109% since the same time last year, marking a significant turnaround for the company.

This report comes on the heels of Meta CEO Mark Zuckerberg's appearance on Capitol Hill, where he testified about the impact of the company's platforms on young users. During the hearing, Zuckerberg issued a rare apology to parents of children who had been harmed by Facebook and Instagram. He assured them that the company is committed to investing in industry-leading efforts to prevent such harm in the future.

Meta's success in the fourth quarter of what they dubbed their "year of efficiency" is a result of strategic layoffs and spending cuts. These measures were implemented to reverse the previous year's revenue declines and share price weakness. For the full year of 2023, Meta reported a 69% year-over-year profit growth to $39 billion.

Despite these positive developments, Meta continues to face challenges. The company has been under scrutiny for privacy issues, the spread of misinformation, and toxic content on its platforms. Zuckerberg has responded to these concerns by shifting the company's focus towards the metaverse and investing heavily in artificial intelligence.

Meta's revenue growth in the fourth quarter was driven by its ads business, which experienced a rebound in the digital advertising market. However, marketers remain cautious about where they allocate their advertising budgets. This caution was evident in Google's recent quarterly report, which fell short of Wall Street expectations due to modest advertising growth.

To support its growth and capital investments, such as data centers and infrastructure, Meta plans to issue its first dividend. This move is typically associated with mature and slower-growth companies. Despite the challenges and pressures Meta faces, the company's user base continues to grow, with over 3.98 billion users across its apps each month.

Meta's success in the fourth quarter and its plans for future growth demonstrate the company's resilience and ability to adapt to a rapidly changing digital landscape. As the company continues to invest in AI and redesign its data centers, it remains a formidable player in the highly competitive tech industry.