"Stock splits used to be a lot more common when fractional shares weren't widely available. That makes them all the more exciting when they're announced. While stock splits are mostly cosmetic, they do have some consequences for investors who don't have access to fractional shares and for options strategies. Additionally, most companies tend to see their stocks rise slightly when stock splits are announced."
"Meta Platforms, formerly known as Facebook, has never split its stock before. It reports earnings on Oct. 29, which is when stock splits are commonly announced. This would make it quite a historic split for the company. Additionally, with Meta Platforms being the sixth-largest company in the world, it could be one of the largest companies to split its stock. Only Nvidia's stock split in 2024 would have been larger when it was about a $3 trillion company."
"Meta Platforms is known as an artificial intelligence hyperscaler. This means that it's spending a lot of money to bring its vision of what AI can be to the masses. This includes integrating AI-powered content into its social media platforms like Instagram and Facebook, but also using AI to boost ad conversions. This is the biggest AI use case for Meta, as it's just an advertising business at its core."
Meta Platforms could announce a large stock split when it reports earnings on Oct. 29, a date when splits are commonly announced. Meta has never split its stock before, and a split at its nearly $2 trillion market value and share price above $700 would rank among the largest in history. Stock splits are largely cosmetic but can affect investors without access to fractional shares and options strategies, and companies often see modest stock gains on split announcements. Meta is investing heavily as an artificial intelligence hyperscaler, integrating AI across Instagram and Facebook and using AI to boost ad conversions. Advertising has also been incredibly strong.
Read at The Motley Fool
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