Meta Platforms, Inc. (META) revealed plans for a substantial share buyback program, allowing the company to repurchase up to $50 billion worth of its outstanding shares. The announcement triggered an immediate positive response from the market, resulting in a jump in the company’s stock price.

Share repurchase programs are often viewed favorably by investors as they can indicate management’s confidence in the company’s future prospects and potentially increase earnings per share. By reducing the number of shares outstanding, each remaining share represents a larger portion of the company’s earnings.

The $50 billion buyback authorization provides Meta with considerable flexibility in managing its capital allocation strategy. The company can execute the repurchases at its discretion, taking into account market conditions and other investment opportunities.

This move comes as Meta continues to navigate the evolving landscape of social media and the metaverse. The company is investing heavily in its metaverse initiatives while also focusing on improving its core social media platforms.

Investors will be closely monitoring Meta’s execution of the share buyback program and its impact on the company’s financial performance in the coming quarters.