Updated
Updated · The Motley Fool · Oct 26
Meta Announces 2-for-1 Stock Split via New Class C Shares
Updated
Updated · The Motley Fool · Oct 26

Meta Announces 2-for-1 Stock Split via New Class C Shares

3 articles · Updated · The Motley Fool · Oct 26

Summary

  • Meta said holders of one Class A share will receive one new non-voting Class C share in January 2027, effectively halving the stock’s per-share price after the record date.
  • The move is designed to make the stock more accessible to smaller investors; at roughly $650 a share, the split would imply two shares worth about $325 each, though final prices will depend on trading levels then.
  • Meta is making the change from a position of scale, with a $1.65 trillion market value and 3.64 billion daily users across Facebook, Instagram, WhatsApp, Messenger and Threads in the third quarter.
  • That reach is helping drive growth—Q3 revenue rose 26% to $64.6 billion—but heavy AI investment is pressuring profitability, with expenses up 68% to $51.6 billion as annual capital spending heads toward $145 billion.

Insights

Why is Meta creating nonvoting shares just as its AI infrastructure spending reaches hundreds of billions?
Can Meta's massive AI gamble pay off before skyrocketing infrastructure costs and negative cash flows crush profits?