The past few months have seen a bunch of artificial intelligence (AI)-related technology companies announce stock splits. In fact, of the five potential AI stock splits I wrote about back in May, four have already either executed or announced imminent splits.
Remember, a stock split doesn’t change the intrinsic value of a stock one iota. But it can open up the stock to more retail investors and/or employees who would like to buy shares in lower dollar amounts, and who don’t have access to fractional share buying.
With stock-split fever in the air and the Nasdaq recovering from its late-July slump, even more AI-related stocks are seeing their share prices soar. With a high share price and the likelihood of more AI-fueled growth ahead, these three are the next candidates to split their stock in the near to medium term.
Meta Platforms
One might not think of Meta Platforms (NASDAQ: META) as an AI leader, but don’t underestimate CEO Mark Zuckerberg and his management team: Meta actually has the potential to beat current market leaders such as OpenAI and others at their own game.
Meta obviously has the financial resources to invest in leading AI infrastructure, but its competitive advantage may be in Zuckerberg’s decision to open-source the company’s Llama model code. Open source essentially means giving away the code for free, but that allows outside developers to optimize and make improvements to the underlying model. That decision has the potential to increase Llama’s innovation faster than closed-source competitors like OpenAI or the models coming from other “Magnificent Seven” stocks.
Meta can afford to do this because selling direct access to its AI large language model isn’t its core business. Rather, its core social media platforms all benefit from the increased potency of AI, which has shown the ability to increase user engagement and better target ads, which leads to more revenue per ad.
That was on display in the second quarter. Despite Meta’s already enormous size, the company was able to grow daily active people by 7%, while increasing revenue by 22% and…
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