Meta Platforms Stock Split Potential
Meta Platforms (NASDAQ: META) shares have surged 443% over the past three years, closing at $661.50 on December 22, 2023. At this price point, Meta is trading similarly to peers like Apple, Nvidia, and Tesla, which have previously announced stock splits. Notably, a stock split could enhance liquidity and attract broader investor participation for Meta, especially as the company has never executed a split since its public offering.
Currently, Meta boasts nearly 3.5 billion daily active users and plans for significant capital investments in artificial intelligence infrastructure, estimated between $66 billion and $72 billion for fiscal 2025. Companies that have enacted stock splits historically see an average total return of 25.4% in the year following the announcement, surpassing the S&P 500’s 11.9% average return.
Overall, Meta’s impressive growth in digital advertising and potential stock split could drive further share price appreciation, benefiting long-term investors looking for strong fundamentals coupled with increased market participation.
