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Meta Platforms (NASDAQ: META) may be preparing to split its shares, currently trading above $650, ahead of significant growth ambitions fueled by artificial intelligence (AI). The company’s management has grown annual advertising revenue from $11.5 billion in 2014 to a projected $161 billion in 2024, representing a 30% compound annual growth rate. Additionally, approximately 20% of its shares are held by retail investors, prompting the potential for a stock split to enhance accessibility for new investors.
Management plans to invest around $70 billion this year to build data centers focused on AI, aiming to roll out features that enhance ad performance and customer interactions by the end of next year. If successful, these innovations could significantly boost Meta’s ad revenue streams.
With a current valuation of 26 times forward earnings, Meta’s stock presents a potentially solid investment, regardless of whether a stock split is announced.
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