Stock splits are gaining popularity among investors, with companies that split shares typically outperforming the market. Meta Platforms, known for its growth, is expected to announce its first stock split. The rise in stock prices due to AI, corporate profits, and Fed policies has fueled this trend. Companies that split their stock tend to see a 25% return, compared to the S&P 500’s 12%.

Meta Platforms boasts an extensive user base through its various social media platforms, reaching over 3.5 billion users daily. Its valuable user data drives targeted advertising, making it the world’s second-largest digital advertiser. Meta’s revenue in Q3 reached $51.2 billion, with a 26% year-over-year increase in earnings per share.

The global ad spending market is projected to surpass $1 trillion, with social media advertising expected to grow by 16%. Meta’s AI advancements, particularly its large language models like Llama, have enhanced content relevance and engagement. User engagement on Facebook and Threads increased in Q3, leading to a 10% rise in average ad prices.

Meta Platforms has been a top-performing stock, with revenue and net income soaring over the years. Despite a 535% increase in stock price since its IPO, Meta has never conducted a stock split. With a current share price above $600, it is speculated to be a prime candidate for a split, given its industry dominance and attractive valuation.

Investors considering Meta Platforms should note that it wasn’t among the Motley Fool’s top 10 stock picks. While a stock split may be on the horizon, Meta’s strong financial performance, industry leadership, and favorable valuation make it a compelling investment choice. Joining Stock Advisor provides access to top stock recommendations and a community of individual investors for potential high returns.

Read more at Nasdaq: This Unstoppable Stock Has Soared 1,550% Since Its IPO. It Could Be the Most Prominent Stock-Split Stock of 2026.