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Meta is splitting its stock: Here’s why, when, and what it means for investors

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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 any of his voting power. 

A stock split is an option that companies can use to increase the number of shares they have available. They might choose this to lower their stock price, making investment in the company more accessible, without changing the company’s overall value. 

In this case, Meta explains in a filing with the Securities and Exchange Commission (SEC) that the additional shares will be a new class of non-voting Class C common stocks.

Taking such action ensures that current voting power—whether it be Zuckerberg’s or an investor’s—remains undiluted. 

Meta has opted for a two-for-one stock split. This means that each share’s value will be split in half. Every investor of a common or supervoting stock should receive a second stock for each share they currently hold. Meta will distribute these additional shares as a one-time dividend. 

We won’t know Meta’s split-adjustment stock price until the day of record ahead of the split. The company’s stock is down over 2% in premarket on Thursday morning after closing at $697.52 a share on Wednesday.

6 trillion. 12 billion.



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