Stock Splits Shine on Meta and AppLovin Amid Surge in Returns

Investors eye stock splits as Meta Platforms and AppLovin surge, potentially doubling returns. With Meta's 510% and AppLovin's staggering 4,700% rise since January 2023, both are viewed positively by analysts seeking strong performers.

Date: 19-02-2025

AI Rating: 8

Potential Impact on Stock Prices

The report highlights the benefits of stock splits, notably that they make shares more affordable and have historically resulted in superior returns compared to the S&P 500. Meta Platforms and AppLovin have both seen monumental price increases recently, raising interest in potential future splits.

Meta Platforms Analysis

Meta reported significant financial gains, with daily active users growing by 5% and revenue increasing by 21% to $48 billion in the fourth quarter. Furthermore, the net income surged by 50% to $8.02 per diluted share, indicating strong profitability and effective management of advertising platforms, which could positively influence its stock price.

The stock is rated highly by analysts, with 87% recommending it as a buy. The forecasted earnings growth of 10% annually through 2026 suggests that even at a current valuation of 30 times earnings, the stocks could maintain appeal as they consistently beat expectations, driving investor confidence.

AppLovin Analysis

AppLovin also provided an impressive financial report, showing a revenue increase of 44% to $1.4 billion, with a remarkable profit margin expansion of 25 percentage points. The net income surged 253% to $0.49 per diluted share, indicating a strong operational performance with future growth potential.

Despite a current valuation of 110 times earnings, projected earnings growth may increase at a remarkable rate of 42% annually through 2026. With 74% analyst buy ratings, AppLovin stands as a strong candidate for investment, suggesting both stocks may positively affect investor portfolios.

Stocks: META APP