"Upside drivers Although stock splits do not change a company's fundamentals, they tend to improve liquidity and broaden the investor base as they lower the per-share price (while increasing the number of shares), which can support higher trading activity and market valuation over time. While the availability of fractional shares has reduced some barriers to entry in stocks with high nominal share prices, research suggests that many retail investors still prefer owning full shares."
"According to data from Bank of America's Research Investment Committee, companies that split their stock reported an average total return of 25.4% in the 12 months following the split announcement, more than double the 11.9% average return of the benchmark S&P 500index in the same time frame. Hence, Meta's stock could see an incremental upside from improved liquidity and broader participation following a stock split."
Shares of Meta Platforms have risen 443% over three years to $661.50, placing the stock in ranges where other large tech companies announced forward splits. Meta has not executed a forward split since IPO, but rising share prices and stronger earnings increase the chance of a split in 2026. Stock splits do not change shareholder value but can improve liquidity and broaden the investor base by lowering per-share prices and increasing trading activity. Research shows companies that split reported an average 25.4% total return in the 12 months after announcement. Meta reaches nearly 3.5 billion daily users and maintains strong digital-ad growth supported by AI infrastructure investments.
Read at The Globe and Mail
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