Stock Split Watch: Is This Magnificent Seven Stock (That's Never Done a Split) Next?

Core Insights - The article discusses the potential for Meta, one of the Magnificent Seven technology companies, to consider a stock split as its stock price has surged significantly, currently trading around $700 after a 400% increase over the past three years [5][9]. Group 1: Stock Splits and Market Dynamics - Stock splits are operations that allow companies to lower their stock price without changing the overall market value, making shares more accessible to a broader range of investors [2]. - The Magnificent Seven, a group of leading technology companies, have generally completed stock splits to manage soaring stock prices, with Nvidia being the most recent to do so [4][5]. - Meta is the only company in this group that has not yet executed a stock split, raising questions about whether it might be next given its current stock price and growth trajectory [3][11]. Group 2: Meta's Business and Growth Strategy - Meta has invested heavily in artificial intelligence (AI) to enhance user engagement on its platforms and improve advertising effectiveness, which has generated excitement among investors [6]. - The company has reported double-digit growth in revenue and net income in its latest quarter, and it has also started paying dividends to shareholders, indicating a balance between growth and investor rewards [7]. - A stock split could reinforce management's confidence in Meta's future and facilitate access for more investors, particularly those who may find the current stock price prohibitive [10].