Meta Platforms (META.US) is anticipated to announce its first-ever stock split on October 29, coinciding with its third-quarter earnings release. If confirmed, this move would rank among the largest stock splits in Wall Street history, given the company’s current market capitalization of approximately $2 trillion.
Trading at $738.36 per share at the latest close, Meta’s high share price presents a significant barrier for many retail investors. A stock split, while a purely technical adjustment that does not alter the company’s fundamental value, would make shares more accessible to individual investors, particularly in markets where fractional share trading is not yet widespread. Historical trends suggest that companies often experience short-term stock price gains following such announcements. In scale, a potential Meta split would be second only to Nvidia’s stock split earlier this year, which occurred when the chipmaker’s market value was around $3 trillion.
Beyond the split speculation, investor focus remains firmly on the underlying strength of Meta’s core business, driven by strategic advancements in artificial intelligence.
Meta’s advertising business is demonstrating robust momentum, underpinned by three key factors:
Meta currently trades at a forward P/E ratio of about 26 times, a premium to the S&P 500’s 22 times, but analysts consider this justified by its superior growth trajectory. Earnings per share (EPS) are projected to surge 60% in 2024. From 2024 to 2027, revenue and EPS are forecast to grow at compound annual growth rates (CAGR) of 17% and 13%, respectively.
User growth continues to be healthy. After an 8% increase in 2023, the daily active people metric for Meta’s Family of Apps rose another 5% in 2024, with a further 6% gain in the first half of 2025. Commercialization efforts for newer platforms like WhatsApp and Threads are also advancing.
Since its IPO in 2012, Meta has delivered stellar long-term returns, with a $1,000 investment at its debut now worth approximately $19,200. Although the stock is trading near all-time highs, analysts maintain that its advertising technology moat, ongoing investments in AI infrastructure, and the long-term potential of its Reality Labs ecosystem continue to support a compelling growth narrative for the social media titan.
