Stock-Split Watch: Is Meta Platforms Next?

Meta Platforms (NASDAQ: META) is one of the Magnificent Seven tech stocks that have led S&P 500 gains over the past few years. These players have many things in common, from well-established businesses and leadership in their markets to strong earnings track records.

But there's one thing that separates Meta from the rest of these players. The company is the only one that hasn't yet launched and completed a stock split. Could this social media and artificial intelligence (AI) giant shift gears and announce such a move in 2026? Let's find out.

Image source: Getty Images.

Why perform a stock split?

So, first, let's consider why companies perform stock splits. These operations often come after a stock has climbed significantly, touching a level that's beyond reach for some investors. A stock split doesn't change anything fundamental about a company or its stock, but it lowers the price of each individual share, opening up the investment opportunity to a broader range of people. (Though fractional shares offer investors an easy way to get in on stocks with a high price tag, they aren't available through every brokerage.)

In a stock split, a company offers current shareholders additional shares, determined by the ratio of the split, but the total value of their holdings remains the same after the operation. So, if the value of your one share was $1,000 prior to the split, your multiple shares after the split together would be worth $1,000.

And speaking of $1,000, as a stock approaches that price, companies often consider executing a stock split, as this level represents a psychological barrier for some investors. They may view the stock as expensive even if valuation metrics show that it isn't.

Meta's 200% gain

Now, let's consider whether Meta may opt for a stock split in the near future. The stock has advanced more than 200% over the past three years, but it's slipped from its highs. Over the past year, it's lost more than 6%.

Today, Meta stock trades for about $670, down from a peak of more than $750 last year.

While this level could discourage some investors from buying, it has been higher -- so price may not be a motive for a split right now. It's also important to note that Meta's focus in recent quarters has been on building up its AI presence and investing in infrastructure to expand its AI capabilities. So organizing a stock split at the moment may not be the priority.

All of this means I wouldn't expect Meta to plan such an operation today, but this doesn't mean it's off the table for 2026. It's key to keep a close eye on Meta's stock price this year. If it gains momentum and climbs quickly, this Magnificent Seven player may decide to join its peers and launch a stock split.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.