There are a number of reasons why investors may be willing to bet big on the tech sector this year. Although some companies have struggled to live up to expectations, META has not been one of them, and with the stock surging 306% in two years, it may be on pace to split for the first time in 2025.
The company embraced a record 20-day gaining streak that has it in rare company on the year. It is all the more impressive considering other Magnificent Seven stocks have struggled mightily to gain some ground this year. It may lead the Mark Zuckerberg-led firm to its very first stock split.
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META May Be Nearing Stock Split as Gains & 20-Week Streak Has it Thriving
A stock split is an important part of any thriving public company. The practice sees a firm increase the number of outstanding shares and issue new ones to present shareholders at a specified proportion. It showcases the confidence management has in the continued success of a company. One of the most recent and notable splits came from Nvidia (NVDA) in June of last year.
there could be a fellow Magnificent Seven stock set to join them, however. Indeed, META has seen its shares increase 306% in two years as a stock split could be on the horizon in 2025. Although it has no bearing on the company’s fundamentals, it will speak to how the firm feels about the continued price increase of its shares.
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META is in a prime position for a stock split after never doing so to this point. The company is ramping up its capital expenditures in 2025. After spending just $28 billion two years ago, that is expected to reach $65 billion. Moreover, it is indicative of the expectations regarding its AI spending.
That spending is taking place because the Mark Zukerberg firm has already seen important returns. Operating income jumped 48% in 2024, and its continued development in artificial intelligence could be massive for its value. Reaching heights of $700 a share this year, its first-ever stock split could bring far more value in relation to its tech competitors.