Stock-Split Watch: Is Meta Platforms Next?
Facebook and Instagram parent Meta Platforms (NASDAQ: META) is soaring. The stock is trading at all-time highs after rising 91% in the last 52 weeks. It also commands a beefy stock price at $565 per share. Is this "Magnificent 7" stock headed for a stock split in the near future?
Let's start with the basics. A stock split simply changes the number of shares that represent a company's total market value. 10 million shares worth $100 each adds up to a $1 billion market capitalization. 100 million shares priced at $10 per share works out to the same market cap. Changing the ratio neither adds nor destroys value for existing shareholders.
That said, stock splits aren't completely pointless. A lower share price can make the stock more easily accessible to investors with modest budgets, especially if they don't have a brokerage account that supports buying or selling a fraction of a full share. The price per share can also make a difference for stock options, where a standard contract represents the right to buy or sell 100 shares at a specific price.
Source Fool.com
Meta Platforms Inc. Stock
With 7 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
On the other hand, the target price of 501 € is below the current price of 516.3 € for Meta Platforms Inc., so the potential is actually -2.96%.
