Meta Platforms: The most anticipated stock split candidates in 2025.

In 2024, one of the focal points in the stock market is undoubtedly the trend of positive stock splits. From Nvidia to Broadcom, and then to Super Micro Computer, the 10-for-1 stock splits of these tech giants have not only significantly lowered the stock price threshold, but also allowed investors to enjoy a significant premium in returns within 12 months after the split. As these giants complete their 'split show,' investors can't help but speculate: who will be the protagonist of the split in 2025?

Among the numerous speculations, Meta Platforms undoubtedly occupies the 'center stage.' As a global social media hegemon, Meta is not only one of the 'Magnificent Seven' (seven tech giants), but also the only member that has never undergone a stock split. After its stock price surged to $620 (as of December 10, 2024), the discussion about whether or not to split has also soared in popularity.

The business model of Meta is almost textbook-level in terms of attracting money. Despite the market's hot discussion of AI technology, the core of Meta's revenue still comes from advertising. In the first three quarters of 2024, out of its $116.1 billion revenue, as much as $113.8 billion came from the advertising business. Platforms like Facebook, Instagram, WhatsApp, Threads attracted a total of 3.29 billion daily active users, making it not only the largest social empire in human history but also the most indispensable traffic entrance for global advertisers. The growth of Meta's advertising revenue is not based on 'burning money to grab territory,' but rather on building a moat based on user scale and precise algorithms.

What's even more noteworthy is that Meta is actively breaking through the 'ceiling of advertisers.' The latest data shows that Meta plans to launch a new advertising customization tool in 2025 that combines Generative AI, allowing brands to precisely target personalized content through 'AI one-click generation.' In simple terms, Meta is using AI to help advertisers spend less and earn more, which will ultimately make Meta itself the biggest winner in the advertising revenue chain.

Of course, Meta's future goes beyond just advertising. The Metaverse is the ultimate battleground where Zuckerberg bets on the 'throne of future technology.' Although the market had doubts about the Metaverse before, Meta countered the 'skeptics' with practical actions: the company has invested $10.5 billion to acquire Nvidia's top-tier GPU for data center upgrades and AI computing power deployment. In 2025, Meta plans to launch a commercial solution that combines the Metaverse with AI, which is not only the intersection of virtual and reality but also likely to be a turning point for the technology industry in the next decade.

Looking at the finances, Meta's fundamentals are almost enough to make peers 'envious to tears': $70.9 billion in cash reserves, generating $63.3 billion in operating cash flow in the first three quarters. This is a company that can continue to gamble heavily in technological transformation without worrying about financial pressure signals.

The act of splitting stocks is never about 'appeasing' shareholders but rather conveying a signal: 'We are not only leading, but our leading edge will further expand.' In the past, companies announcing positive splits have mostly outperformed the S&P 500 Index in the following 12 months. If Meta joins this group, it will undoubtedly become the market focus in 2025.

To split or not to split, this advertising giant, AI pioneer, and leader in the Metaverse are already standing at the pinnacle of the future. In 2025, Meta is worth every investor's breathless anticipation.

Presenting a light-hearted and easy-to-understand nonsense piece about a good company, but after reading, that's it... I'm just talking nonsense when I have time... No trading advice at all!!! Otherwise, consequences at your own risk 😎

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