No, Meta (previously known as Facebook) has not split its stock recently. The company has only conducted one stock split in its history, which was back in 2020.
What is a stock split?
A stock split is when a company decides to divide its existing shares into multiple new shares. For example, in a 2-for-1 stock split, an investor who owned 1 share worth $100 would now own 2 shares worth $50 each. The total value of the investment remains the same, at $100 in this example, but the number of shares outstanding increases.
Companies may decide to split their stock for a few reasons:
- To make the stock more affordable for small investors. If a stock is trading at a high price, splitting it can bring the price down into a more comfortable range.
- To increase liquidity. More shares outstanding can make the stock easier to trade.
- To reinvigorate interest and trading. The split may generate new interest in the stock and increased volume.
Meta’s stock split history
Meta has only conducted one stock split in its history so far. This was a 2-for-1 split announced in April 2020 and effective in August 2020.
Here are the details of Meta’s stock split:
- Announcement date: April 9, 2020
- Record date: May 15, 2020
- Distribution date: August 28, 2020
- Split ratio: 2-for-1
On the record date, shareholders would have received 1 additional share for every 1 share they owned. So if you owned 100 shares of Facebook before the split, you would have owned 200 shares after.
Impact of the 2020 stock split
Meta’s stock split in 2020 had the following effects:
- The share price was cut in half – from around $250 before the split to around $125 after.
- The number of shares outstanding doubled from about 2.3 billion to 4.6 billion.
- Market capitalization remained unchanged at around $690 billion.
- Ownership percentages were unaffected.
By making the stock more accessible at the lower $125 price point, trading volume surged over 50% right after the split. However, Meta’s stock price would continue rising over the following years, reaching highs of nearly $400 per share in 2021.
Has Meta announced any new stock splits?
No, Meta has not announced any plans for a new stock split since the 2020 2-for-1 split. The company’s share price has pulled back recently to around $130, so another split does not appear necessary to make the stock more accessible.
Could Meta do another stock split in the future?
Meta could absolutely decide to do another stock split in the future if the share price rises substantially again. Many fast-growing tech companies like Alphabet, Amazon, and Apple have done multiple stock splits as their share prices increased over time.
However, Meta would likely wait for the share price to reach closer to $200-300 before considering another split. There are costs and work involved with a split, so companies generally only pursue them when the high stock price starts deterring smaller investors again.
What would drive Meta to split its stock again?
Here are some factors that could lead Meta to conduct another stock split in the future:
- Share price appreciates substantially – If the stock returns to $250+, a split would bring the price back to a more accessible level.
- Increased liquidity needed – More shares outstanding could facilitate trading as daily volume increases.
- Broader shareholder base desired – A lower price could allow smaller investors to buy round lots.
- Stock looks “expensive” – Psychology tends to view a $300 stock as pricey compared to a $150 stock.
What is the outlook for Meta’s stock and business?
Meta is facing some near-term headwinds that have dragged down the share price recently, including:
- Intense competition from TikTok
- Apple’s privacy changes hurting ad targeting
- Recession fears weighing on digital ad spending
- METAVERSE investments significantly cutting profits
However, Meta still owns some of the most dominant social media apps globally with Facebook, Instagram, and WhatsApp. Long-term, Meta is making big bets on the metaverse being the next major computing platform. If the metaverse gains traction over the coming years, Meta would be well-positioned to benefit as an early leader.
Conclusion
In summary, Meta has not conducted a stock split since the 2-for-1 split in 2020. The company could absolutely split its stock again in the future if the share price appreciates considerably and a lower price is desired to make the stock more accessible. Given Meta’s near-term challenges but long-term metaverse potential, the share price outlook is mixed. If Meta’s stock recovers back toward the $250+ range, investors should watch closely for any announcements of a new stock split.