Meta Stock Splits: Everything Investors Need to Know

Meta's stock split has been a hot topic among investors, and for good reason. Meta's stock price has been steadily increasing over the years, but the company's decision to split its stock has sparked a lot of debate.

The first thing to know about Meta's stock split is that it's not a change in the company's underlying value. Meta's market capitalization remains the same, but the split makes the stock more accessible to individual investors.

Meta's stock split is also not a sign of financial weakness. In fact, the company has been profitable for several years, with a strong track record of growth and innovation.

The stock split is simply a way for Meta to make its stock more attractive to a wider range of investors. By splitting the stock, Meta can make it easier for individual investors to buy and own shares.

A different take: Stock Investor

Meta's share price is now approaching $600 a share, which gives it one of the highest share prices of any stock on the S&P 500 index.

The company has been posting impressive gains lately, with revenue up 19% to $40.6 billion and operating income jumped 26% to $17.4 billion in its last quarter.

Meta's stock is also reasonably priced at a price-to-earnings ratio of 28, so there's good reason to believe it can continue to move higher from here.

A stock split would likely please shareholders, but Meta hasn't given any indication that it would split its stock.

CEOs with a long-term mindset, like Jeff Bezos of Amazon, sometimes choose not to split their shares as they think it attracts a kind of investor who isn't aligned with the long-term vision of the business.

Investors should listen closely to comments from Zuckerberg on upcoming earnings calls and other appearances about his long-term approach and any thoughts about stock splits.

Meta remains the only one of the "Magnificent Seven" tech giants that hasn’t split its shares, despite trading above $500 a share.

Stock splits do not alter a company’s fundamentals but reduce the price per share, making stocks more accessible to smaller retail investors and employees who might be put off by high share prices.

Additional reading: What Nvidia Stock Split Means for Investors

Meta's stock has surged over 450% since its low in 2022, a significant increase that has analysts eyeing a potential stock split.

Meta is trading above $500 a share, a price level that could make it more accessible to smaller retail investors and employees who might be put off by high share prices.

This is a notable milestone, as Meta remains the only "Magnificent Seven" tech giant that hasn't split its shares yet.

The company has gained from the market's appetite for AI, share buybacks, and the introduction of a dividend in the past year, which has contributed to its impressive stock performance.

Bank of America analysts suggest that more tech sector splits could be on the horizon, and Meta's move could be a catalyst for this trend.

Meta's stock performance has been impressive, but it's essential to note that stock splits do not guarantee outperformance, and around 30% of stocks that split shares experienced negative returns 12 months later.

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Meta was founded in 2004 by Mark Zuckerberg, along with his college roommates and fellow Harvard University students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes.

Meta is headquartered in Menlo Park, California.

Meta's mission is to give people the power to build community and bring the world closer together.

Meta's products include Facebook, Instagram, and WhatsApp.

Meta's market capitalization is over $800 billion.

Meta has over 88,000 employees worldwide.

Meta's CEO is Mark Zuckerberg, who has been leading the company since its inception.

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