Meta Platforms(META) The Motley Fool·2025-03-12 09:27Core Viewpoint - Bank of America anticipates that several fundamentally strong technology companies will announce stock splits in 2025, which could enhance liquidity and accessibility for investors, potentially leading to significant price appreciation [2][3]. Group 1: Stock Split Trends - The popularity of stock splits in the technology sector has surged, with historical data indicating that stocks that undergo splits tend to grow between 25% and 30% in the year following the event, outperforming the S&P 500's average annual growth of 10% to 12% [2]. Group 2: Meta Platforms - Meta Platforms has seen its stock price increase by 219.8% over the past three years, despite a recent pullback of 13.6% from its 52-week high, making it a strong candidate for a stock split [4][5]. - In fiscal year 2024, Meta's revenues grew 22% year over year to 69.4 billion, driven by its extensive ecosystem of apps [6]. - The company is leveraging advanced AI infrastructure to enhance digital advertising returns, with an 8% increase in advertisement quality and plans to process larger volumes of ads in the future [7]. - Meta AI is projected to reach over 1 billion users by 2025, providing valuable data to refine AI offerings and create new revenue streams [8]. - Meta plans to invest 65 billion in capital expenditures in 2025, primarily for AI infrastructure, which could yield significant long-term returns despite short-term concerns [9]. Group 3: Netflix - Netflix is positioned for a stock split in 2025, nearly a decade after its last split in 2015, with over 300 million paid memberships and an estimated global audience of over 700 million [10][11]. - The company's advertising business is growing, with ad-supported memberships increasing by 30% sequentially in Q4 of fiscal year 2024, and high user engagement is expected to attract more advertisers [12]. - Netflix reported a 16% year-over-year revenue increase to 8.71 billion, alongside significant cash flow generation [13]. - The strong financial performance and commitment to returning value to shareholders through share repurchases make Netflix a compelling investment in 2025 [14].