Meta is splitting its stock: Here’s why, when, and what it means for investors
On Wednesday, Meta Platforms released its third-quarter earnings report with some news: a stock split is coming. The owner of Facebook, Instagram, and WhatsApp plans to split its shares (Nasdaq: META) in a move that will drop the company’s per-share stock price. If all goes well, Meta should end up with more money to fund its ongoing AI goals , but without forcing CEO Mark Zuckerberg to give up…
Meta Platforms has announced a two-for-one stock split for its shares, which will take effect on January 19, 2027. The company, which owns social media platforms Facebook, Instagram, and WhatsApp, aims to lower the per-share stock price and make investment more accessible. The split will not affect Meta's overall value or Zuckerberg's voting power.
The new shares will be distributed as a one-time dividend. Meta's stock price has dropped over 2% in premarket trading after closing at $697.52 on Wednesday. The split-adjusted stock price will be determined on the day of record ahead of the split. The company reported record high revenue for Q3, up 26% year-over-year to $61.6 trillion, but its free cash flow is negative for the first time in over a decade at $-2.12 billion.
Meta has been investing heavily in AI while facing significant legal penalties, including a $25 billion fine in New Mexico for misleading users about data handling. Zuckerberg will be able to sell 20% of his non-voting shares post-split, potentially due to California's Prop.40, which would levy a 5% tax on billionaires residing in the state.
Zuckerberg has pledged to live in California for at least eight years, barring unforeseen circumstances.
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