Meta Platforms To Go With Stock Split

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Meta Platforms To Go With Stock Split

Analysts Forecast Stock Split For Meta Platforms

The dominant market theme in the year was 2024, and there were a lot of them! Many big names, such as Chipotle, Broadcom, Nvidia and Walmart, had stock splits in 2024.

According to analysts, the company which will go through a potential stock split in 2025 is Meta Platforms. Now, that's a tech giant which is too famous and doesn't need any introduction.

Why Meta Platforms Will Go With Stock Split?

However, its worth noting that Meta Platforms have launched any type of stock split in the past. But, there's a first time for everyone and experts believe the time is now!

Over 3.2 billion people use at least one of Meta's applications every day, demonstrating the company's supremacy in social media. As a result, its revenue and earnings have risen into the billions of millions. Additionally, its stock has been rising, and it is currently trading close to a record high.

But why the Meta Platforms will split its stock? Right now, the price of one Meta Platform share is $600, which is too high for small investors. This is despite the fact that the forward earnings estimate of Meta is 24x.

Once a share crosses $1000, many investors start to see it as too expensive. That's why many companies go through a stock split before even reaching the $1K price level.

Also, not everyone can access the fractional shares, which leaves the stocks like Meta Platforms out of their reach.

Therefore, a stock split could provide these prospective buyers with an investment opportunity by reducing the price per share by issuing more shares to existing holders.

Since all of this lends credence to the notion of declaring a stock split, I believe Meta will be the next AI player to do so. The good news is that Meta is still a strong long-term buy-and-hold option for growth investors, even if it doesn't.

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