Prediction: Wall Street's Most Unique Member of the "Magnificent Seven" Will Become the Hottest Stock-Split Stock of 2025

Market Performance in 2024 - The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite increased by 14%, 25%, and 32% respectively year-to-date as of Dec 23 [1] Stock Splits in 2024 - Over a dozen prominent companies completed stock splits in 2024, including Nvidia, Broadcom, and Super Micro Computer [2] - Investors are showing strong interest in stock-split stocks [3] - Forward splits, which reduce share price to make shares more affordable, were particularly popular among industry-leading businesses in 2024 [11] - Historically, companies enacting forward splits have outperformed the S&P 500, averaging a 25.4% return in the 12 months following their announcement compared to the S&P 500's 11.9% return [15] Meta Platforms' Position - Meta Platforms is the only member of the "Magnificent Seven" that has never completed a stock split [5] - Meta's stock is likely to head higher, making a stock split a priority in the new year [6] - Meta's shares were close to topping $600 as of Dec 23, potentially making it difficult for some investors to invest without a split [16] - Meta's competitive advantages and balance sheet suggest it could have another phenomenal year in 2025 [17] Meta Platforms' Financials and Strategy - Meta is aggressively investing in the AI revolution, purchasing 350,000 H100 graphics processing units from Nvidia for roughly $10.5 billion [8] - Meta's family of apps, including Facebook, Instagram, WhatsApp, Facebook Messenger, and Threads, attracted 3.29 billion daily active users in the September-ended quarter [10] - Nearly 98% of Meta's revenue comes from advertising [10] - Meta closed out September with $70.9 billion in cash, cash equivalents, and marketable securities, and generated $63.3 billion in operating cash flow through the first nine months of 2024 [20] - Meta is trading at less than 24 times forward-year earnings, with earnings per share forecast to grow at a compound annual rate of more than 21% through 2027 [12] The Magnificent Seven - The Magnificent Seven includes Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, and Tesla [13][21] - These companies have consistently outperformed Wall Street's major stock indexes over long periods and possess sustainable competitive advantages within their respective industries [21] Economic and Market Catalysts - The rise of artificial intelligence, better-than-expected corporate earnings, and Donald Trump's November victory are key catalysts propelling Wall Street's major stock indexes to new heights [18] - The euphoria regarding stock splits has significantly fueled the 2024 bull market rally [19]