Meta Stock Has Soared Almost 50% Over A Year But Now The ...
Meta Platforms, Inc. (NASDAQ: META) is reportedly making changes to its stock-based compensation for employees as it invests heavily in capex to compete with industry leaders such as OpenAI, Alphabet, and Amazon.
What Happened:
According to the Financial Times, Meta has reduced its annual equity-based awards by approximately 10% for most employees, affecting tens of thousands of workers. These equity refreshers, a significant part of employee compensation, are distributed annually and vest over four years. The exact reduction varies based on employee location and level within the organization. Meta did not immediately respond to Benzinga's request for comments.
Meta's stock awards reduction comes at a time when the company reported strong financial results for the fourth quarter of 2024, with revenue totaling $48.39 billion, exceeding analyst expectations. However, Meta is also facing backlash over performance-based layoffs that impacted around 3,600 employees. Some former employees allege they were unfairly targeted despite having strong performance records.
Why It Matters:
Despite facing some challenges, Meta's stock has shown significant growth, with a 47.29% increase year-over-year. The stock has gained 13.39% in the past month, 31.92% over six months, and 15.95% year-to-date. Although still below the $1,000 mark, Meta's stock is on the rise. Analysts from Tigress Financial, UBS, and Citigroup have set an average price target of $833.67, suggesting a potential 20% upside from current levels. This growth has sparked speculation that Meta could be a top contender for a stock split in 2025.
Price Action:
Meta Platforms' stock closed at $694.84 on Thursday, marking a 1.27% decrease for the day. In after-hours trading, it dipped slightly to $694.70. According to data from Benzinga Pro, Meta's stock has shown strong performance despite recent challenges.
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