Meta Platforms Inc.’s recent record-setting 20-day rally has propelled its share price to levels that are raising speculation about a stock split—the first since the company went public in 2013. The social media giant’s stock hit a record closing price of $736.67 on February 14, marking a more than 25% gain for the year by the end of last week. Despite two days of declines, Meta remains the top performer among the “Magnificent Seven” tech stocks in 2025, though its shares are fluctuating in early Thursday trading.
Unlike its peers in the tech megacap cohort, Meta has never conducted a stock split. Stock splits are often considered when a company’s share price becomes so high that it could deter smaller retail investors. While a stock split is a purely mathematical move that doesn’t affect a company’s fundamentals, it lowers the price per share, making it more accessible to a wider audience.
In 2024, companies like Nvidia and Broadcom executed stock splits following significant rallies, driven in part by the surge in artificial intelligence advancements. “They want to make their stocks more accessible to a broader audience,” said Francisco Bido, senior vice president and portfolio manager at F/M Investments. “It’s a good reason.”
Bido also noted that stock splits can signal a company’s confidence in its future earnings and growth opportunities. “Rarely do you see a company that’s not doing very well go ahead and split,” he added.
Other big tech companies are also in the position to consider a stock split. Netflix, for instance, has gained more than 17% this year and recently surpassed the $1,000 per share mark. This price level has often prompted companies to split their stock. Netflix previously carried out a seven-for-one stock split in 2015.
Stock splits can also benefit companies beyond attracting retail investors. Nvidia’s May 2023 stock split likely played a role in its inclusion in the Dow Jones Industrial Average later that year. The resurgence of stock splits follows the rise of fractional shares, which had made splits less common in the past. Last year, 17 S&P 500 companies split their shares, the highest number since 2013, according to Bank of America analysts. Seven Nasdaq 100 companies followed suit in 2024 after none in 2023.
Stock splits can also foster positive sentiment, with studies showing that stocks typically outperform the broader market after a split. According to Bank of America’s analysis, stocks see an average return of over 25% one year after a split, compared to 12% for the broader market. In 2024, the average stock price increase following a split was even stronger, at 17% over the subsequent six months.
Of the Magnificent Seven tech giants, five have executed stock splits since 2022, including Nvidia, Alphabet, Amazon, Tesla, and Apple. The last time Microsoft split its stock was in 2003. Currently, there are about 40 companies in the S&P 500 with share prices above $500, putting them in the running for a potential split. Besides Meta and Netflix, this group includes companies like ServiceNow, KLA, Tyler Technologies, Intuit, and Synopsys.
