The Motley Foolยท2025-08-18 07:51Core Viewpoint - The article discusses the potential for stock splits among major companies, particularly focusing on Meta Platforms and Microsoft, as they are seen as candidates for becoming the next blockbuster stock-split stocks in 2025 due to their high share prices and strong retail investor ownership. Group 1: Stock Split Dynamics - Stock splits are a method for public companies to adjust their share price and outstanding share count without affecting market capitalization or operational performance [4] - Forward splits are generally favored by investors, as they make shares more affordable for retail investors, while reverse splits are often associated with struggling companies [5][6] - The excitement around stock splits has contributed to rising valuations for leading businesses on Wall Street [2][4] Group 2: Candidates for Stock Splits - Meta Platforms, with a share price nearing $800, is a strong candidate for a forward split, especially since it has never completed a split before [14] - Over 27% of Meta's outstanding shares are held by retail investors, which supports the case for a potential split [15] - Microsoft's share price is also above $500, and it has a significant portion of its shares held by retail investors, making it another strong candidate for a stock split [23][27] Group 3: Company Performance and Future Outlook - Meta Platforms is leveraging artificial intelligence to drive double-digit growth in ad sales, with its social media platforms attracting 3.48 billion daily users [17][18] - The company has a robust cash position, with over $47 billion in cash and equivalents, allowing for risk-taking and investment in future growth [20] - Microsoft has a strong reliance on AI for growth, particularly in its Azure cloud services, which saw a 39% year-over-year sales increase [25] - Both companies are well-positioned for future growth, suggesting that their share prices may continue to rise, further supporting the case for stock splits [24][27]