Meta: A Split in the Fabric of Reality?

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The market, as any seasoned observer of its peculiar habits will tell you, operates on a principle best described as ‘organised bewilderment’. Recently, it’s been exhibiting a fondness for something called ‘stock splits’. These aren’t, as the less discerning might assume, cracks appearing in the foundations of capitalism itself. Rather, they are a rather clumsy attempt to make shares seem… more accessible. Like dividing a particularly large pie into smaller slices, hoping more people will believe they’re getting a fair portion.1 This current flurry of slicing and dicing is fuelled by the usual suspects: a surfeit of optimism, an excess of available capital, and the persistent human belief that something going up will, inevitably, continue to do so.

Now, a split doesn’t create value, you understand. It’s a bit like rearranging the deckchairs on the Titanic – it might make things seem tidier, but it doesn’t alter the ship’s ultimate destination. However, it does create a psychological effect. A lower price feels cheaper, even if the underlying worth remains unchanged. And human beings, bless their illogical hearts, are remarkably susceptible to feeling.

There’s a certain logic to this, of course. When a company’s shares climb to truly Olympian heights, it becomes difficult for the common investor – the one who doesn’t have a dedicated team of accountants and a private jet – to participate. A split brings the price back down to earth, allowing a wider range of individuals to acquire a piece of the action. Or, at least, the illusion of a piece of the action.2

The Realm of Meta

Amongst the various contenders for a forthcoming split, one name keeps surfacing: Meta Platforms. The company formerly known as Facebook, and before that, just a rather ambitious idea scribbled on a dorm room wall, has become a digital behemoth. It controls access to a substantial portion of the world’s attention, a power that would make even the most despotic emperor envious.

Meta’s reach is, frankly, astonishing. Through Facebook, Instagram, WhatsApp, Messenger, and the relatively new Threads, it connects billions of individuals. This isn’t merely a matter of convenience; it’s a fundamental shift in how humans communicate, share information, and, crucially, spend their money. The company doesn’t simply provide a platform; it curates reality for a significant portion of the population.3

And all this attention translates into revenue. In the most recent quarter, Meta reported a staggering $51.2 billion in revenue, a 26% increase year-over-year. Earnings per share climbed by 20%, demonstrating the company’s ability to not only attract users but also to monetize their activity. This isn’t just good business; it’s a demonstration of sheer, unadulterated market dominance.

The Growing Digital Kingdom

But Meta’s growth isn’t solely dependent on its existing platforms. The company is also investing heavily in new technologies, most notably artificial intelligence. Its Llama model, an open-source AI, is rapidly gaining traction, offering a competitive edge in the increasingly crowded AI landscape. This isn’t about creating intelligent machines; it’s about refining the art of persuasion. The better the AI, the more effectively Meta can target its advertising and, ultimately, extract value from its users.

Furthermore, the overall digital advertising market is expected to continue expanding. Analysts predict that global ad spending will surpass $1 trillion in 2026, with social media being one of the fastest-growing segments. This isn’t a sustainable trend, of course. Nothing is. But it provides Meta with a significant tailwind in the short to medium term.

Why a Split Seems Likely

Over the past decade, Meta’s revenue has soared by 852%, and its adjusted net income has increased by 959%. This impressive growth has driven the stock price to dizzying heights, up 535% since its initial public offering. In fact, since 2012, the stock has risen by a remarkable 1,550% from its $38 IPO price. Yet, it remains the only member of the so-called “Magnificent Seven” that has never conducted a stock split.

Now, a company doesn’t have to split its stock. It’s a matter of perception and accessibility. But with a current share price exceeding $600, Meta is increasingly out of reach for many individual investors. A split would bring the price back down to a more manageable level, potentially attracting a new wave of buyers.

However, investors shouldn’t purchase Meta stock solely on the expectation of a split. That would be akin to chasing a mirage. But the company’s consistent growth, industry dominance, and attractive valuation – currently trading at less than 28 times earnings, lower than its peers and the S&P 500 average – make it a compelling buy regardless.

In conclusion, while the market’s fascination with stock splits may be a temporary phenomenon, Meta appears to be a prime candidate for one. It’s a company that has consistently demonstrated its ability to adapt, innovate, and dominate its industry. And in the chaotic realm of digital capitalism, that’s a rare and valuable quality.

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1 The Guild of Alchemists and Venture Capitalists, you see, are rather fond of illusions. It keeps the peasants content.

2 The Unseen University of Coders maintains that reality is merely a complex algorithm, easily manipulated with the right lines of code.

3 This, naturally, raises questions about free will and the nature of consciousness. But those are best left to the philosophers… and the marketing departments.

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2026-01-16 11:03