- Meta Platforms increased its share purchase authorization by $40 billion.
- The social networking company has sought to rein in costs as revenue growth has slowed in recent quarters.
Facebook parent Meta Platforms said in its quarterly earnings statement on Wednesday that it has increased its share repurchase authorization by $40 billion.
In 2022 the social network operator bought back about $28 billion in stock, according to the statement.
The company began buying back shares in 2017, according to FactSet, but ratcheted quarterly buybacks up above the $10 billion mark for the first time in 2021, as growth from the Covid pandemic helped double net income. Meta has yet to start paying a dividend to shareholders.
Meta's fourth-quarter results surpassed analysts' revenue estimates, which helped send shares up more than 17% after hours.
During the quarter Co-founder and CEO Mark Zuckerberg said Meta was laying off 13% of employees as the company was working to "become a leaner and more efficient company." Meta's revenue has now declined year over year for three consecutive quarters, leading it to become more cost-conscious.
Net income fell by 55% to $4.65 billion, but Meta had nearly $41 billion in cash, cash equivalents and marketable securities at the end of 2022.
Meta announced a $50 billion increase in its share repurchase authorization in October 2021.