Meta's Skyrocketing Stock Price: Why Investors Are Watching for a Potential Split

Meta Platforms (NASDAQ: META) has delivered remarkable returns, with shares climbing 443% over three years and reaching $661.50 by late December. This valuation puts the company in the same territory where tech heavyweights like Apple, Nvidia, and Tesla have previously pursued stock splits—a move Meta has yet to make despite its public trading history.

The Case for a Stock Split

While traditional stock splits don’t alter a company’s fundamental value, they frequently unlock tangible benefits for investors. Research from major financial institutions shows that companies announcing stock splits experienced an average 25.4% total return within 12 months of the announcement, significantly outpacing the S&P 500’s typical 11.9% gain during comparable periods.

The mechanics are straightforward: lower share prices increase accessibility for retail investors who prefer owning full shares rather than fractional positions. This expanded participation typically drives enhanced trading volume and can support sustained valuation growth over time. As Meta’s per-share price continues climbing, the probability of a forward split materializing in 2026 has strengthened considerably.

A Powerhouse Digital Engine

Meta’s competitive moat remains formidable. The company reaches nearly 3.5 billion daily active users across its interconnected platform ecosystem—an unparalleled advantage in global digital advertising markets. This massive scale translates directly into pricing power and advertiser dependence.

Capital deployment further reinforces this position. Management has guided 2025 expenditures between $66 billion and $72 billion, primarily directed toward artificial intelligence infrastructure expansion. These investments are already yielding measurable results: AI-powered advertising tools are improving campaign targeting precision and advertiser return on investment metrics. The company is simultaneously broadening its ad monetization surfaces through newer channels including WhatsApp, Reels, and Threads, expanding the addressable market beyond traditional Facebook placements.

The Split Catalyst

For long-term investors, a potential stock split could function as an accelerator atop the company’s already-solid operational foundation. Improved liquidity and broader investor participation might provide additional momentum to share price appreciation during the coming quarters. The combination of Meta’s dominant market position, aggressive AI infrastructure buildout, and the historical track record of post-split outperformance creates an intriguing investment narrative.

Whether Meta ultimately executes a split remains uncertain, but the fundamental drivers supporting the stock remain intact.