Stock Split Watch: Is This Magnificent Seven Stock (That's Never Done a Split) Next?

All of the Magnificent Seven stocks -- except one -- have this in common: They've each completed at least one stock split at some point in time. These are operations that allow a company to lower the price of its stock -- and they've come in handy as Magnificent Seven players have seen their shares skyrocket in recent years.

In a stock split, a company issues more shares to current holders, but the value of their overall investment -- and the market value of the company -- remain the same. So, a stock split doesn't change anything fundamental, but it does help bring a soaring stock price back down to Earth. And that may make it easier for a broader range of investors to buy it.

Though a stock split on its own isn't a reason to buy a particular player, investors still keep a close eye on potential stock split candidates. After all, when a company decides on a split, it suggests management is confident about the future and the stock's chances of climbing once again. And that's why, right now, it's logical to wonder if the one Magnificent Seven company that's never done a split might be next on the list... Let's consider the possibility.

Leading S&P 500 gains

First, though, a quick look at the Magnificent Seven. They are a group of technology companies, many involved in the hot area of artificial intelligence (AI), that have seen revenue climb and have led gains in the S&P 500 over the past few years. They are: Apple, Amazon, Alphabet, Meta Platforms (NASDAQ: META), Microsoft, Nvidia, and Tesla.

Following this stock price momentum, and some of these players have chosen to complete a stock split. Nvidia was the most recent of the bunch, completing a 10-for-1 split last year, bringing its stock down from about $1,000 to the $100 range.

But the one player that hasn't yet harnessed the power of a stock split is Meta. The company's stock has climbed more than 400% over the past three years, and it now trades for more than $700 a share. This is amid surging earnings and a focus on winning in the AI space.

You may know Meta best as a social media company, as it owns the popular apps Facebook, Messenger, Instagram, and WhatsApp -- and advertising across these platforms drives revenue at the company. But over the past few years, Meta has invested heavily in AI and aims to use this technology to keep users on its apps longer, revolutionize the creation and performance of ads across its platforms, and develop new products. All of this has stirred up excitement among investors, as they see the potential for this to supercharge Meta's growth over the long term.

Double-digit earnings growth

In the latest quarter, Meta reported double-digit growth in revenue and net income, and in recent years, the company even started to pay a dividend to shareholders. So, Meta has been able to balance growth with rewarding its investors.

Now, let's consider why Meta might decide on a stock split at this point. As mentioned, most companies do this when the stock has soared to a level that makes it difficult for some investors to access. Companies also may consider that certain price levels represent a psychological barrier for investors. For example, some investors may consider stocks priced above $1,000 expensive even if valuation measures say they aren't.

Today, as mentioned, Meta stock trades for around $700, and though it's gained over the past few years, it has fallen from a record high of more than $780.

A stock split could be a smart move for Meta as it would reinforce the idea that management is confident about the company's future and its decision to go all in on the high-stakes field of AI. And it could make it easier for more investors to get in on the stock too; some might not have the investing budget to cover the purchase of Meta at today's level and may not have access to fractional shares.

Will Meta make the move? That's impossible to predict, but as the one Magnificent Seven stocks that hasn't yet completed a split, and with the shares close to their record high, this tech giant could be next on the list.

Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.