Meta Stock Split Rumors: AI Giant’s Next Move?

Stock splits don’t create any fundamental value, but when announced, they consistently attract considerable attention from retail investors. The psychological appeal of lower share prices can entice everyday investors to purchase shares they might otherwise consider too expensive. For Meta Platforms, currently trading above $700 per share, a split could open the doors to smaller investors who have been priced out of owning a piece of the social media giant. This accessibility factor becomes particularly relevant as Meta continues its aggressive push into artificial intelligence, positioning itself as a leader in one of technology’s most promising frontiers.

The current share price presents a significant barrier for many retail investors, requiring just north of $700 for a single share. While this doesn’t change the underlying value of the company, it does impact who can participate in Meta’s growth story. As the company triples down on AI investments and demonstrates strong financial performance, the discussion around a potential split intensifies. The fundamental truth remains unchanged: it doesn’t matter how many times you cut a share price; what ultimately matters is the business itself and its ability to generate sustainable value for shareholders.

Meta Platforms is emerging as a formidable contender in the artificial intelligence race, with CEO Mark Zuckerberg leading an aggressive charge to secure top AI talent and develop cutting-edge technology. What makes this AI narrative particularly compelling is that Meta shares trade at a modest 25.5 times trailing price-to-earnings ratio, suggesting the stock may be reasonably valued despite its technological ambitions. The company’s AI strategy extends beyond mere experimentation, focusing on practical applications that could revolutionize its core social media platforms and digital advertising capabilities.

The potential for AI to transform Meta’s business model is substantial, particularly in areas like AI-made ads and AI-driven targeting that could enhance advertising efficiency and effectiveness. Perhaps the most significant opportunity lies in how artificial intelligence might finally monetize WhatsApp, turning the massive messaging platform into a genuine cash cow. With earnings growth projected to rise by high-teens percentages over the foreseeable future, Meta’s fundamental story remains strong regardless of any stock split speculation. The company’s ability to leverage AI across its family of apps while maintaining reasonable valuation metrics makes it an attractive long-term investment proposition.

Wall Street analysts are increasingly bullish on Meta’s prospects, with Rosenblatt Securities analyst Barton Crockett maintaining a price target just shy of $1,100 per share—representing approximately 55% upside from recent levels. As shares approach these four-figure milestones, the probability of a stock split naturally increases. The company last underwent a stock split in 2022, and with shares potentially surpassing $1,000 in the not-so-distant future, market observers see growing likelihood of another split within the next two years, especially if the stock continues appreciating at its current blistering pace.

However, timing remains uncertain due to macroeconomic factors that could influence Meta’s decision-making. Recent threats of 100% tariffs on Chinese goods from the Trump administration create potential headwinds for technology stocks broadly. Such macro shocks could weigh on the entire market and potentially delay any split announcement if Meta’s stock experiences continued downward pressure. The company has made no official announcement regarding split intentions, leaving investors to weigh probabilities based on share price movement and market conditions rather than concrete guidance from management.

Despite recent volatility that saw Meta dip nearly 11% from its all-time highs around $800 per share, the underlying investment thesis remains intact. The combination of reasonable valuation, strong AI positioning, and robust earnings growth potential makes Meta an attractive investment regardless of split timing. For investors considering entry points, the current price level may represent an opportunity to establish positions before any potential split-driven retail enthusiasm, though investment decisions should ultimately focus on business fundamentals rather than split speculation.