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(Bloomberg) — With the number of companies conducting stock splits increasing this year, Wall Street is wondering who might be next, with some analysts pointing to Meta Platforms Inc.

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Meta is the only stock in the so-called Magnificent Seven that has never split shares. And although the stock has slipped from its all-time high in April, it is up more than 450% since its 2022 low.

At over $500 a share, “Meta is ripe for a split,” said Ken Mahoney, president of Mahoney Asset Management, referring to a price that is important for investors. The stock has benefited over the past year from demand for AI exposure, buybacks and the introduction of a dividend.

Meta shares lost as much as 0.7 percent in early trading on Tuesday.

Splitting stocks doesn’t change a company’s core fundamentals, but it does lower the price per share. This can make a stock more attractive to smaller retail investors and workers who might otherwise be put off by high share prices. It could also make top technology stocks more likely to become candidates for possible inclusion in the price-weighted Dow Jones Industrial Average — currently, no stock in the index trades above $500 per share.

The practice is back in focus after Nvidia Corp. shares traded on a split-adjusted basis on Monday after the company announced a 10-for-1 split in May — and the stock has risen 28% since then. The artificial intelligence company is the sixth member of the S&P 500 to announce a stock split this year, up from four in 2023.

Analysts at Bank of America believe this is a sign of more to come in the technology sector. Nvidia’s split is the fourth of the Magnificent Seven to make such a move since 2022 – the others are Alphabet Inc., Inc. and Tesla Inc. – and Apple Inc. conducted its own stock split a few years earlier, in 2020.

Bank of America recently identified potential candidates for stock splits, including technology companies such as Broadcom Inc., Lam Research Corp., Super Micro Computer Inc., KLA Corp. and Netflix Inc. The analysts also pointed out that Microsoft Corp., although its stock price is not even at $500, could be in line for a stock split as the company has not done one in more than two decades.

Of course, a stock split is no guarantee of outperformance. According to Bank of America, about 30 percent of split stocks posted negative returns 12 months later. In addition, an analysis by Trivariate Research found that mega-cap companies that conducted stock splits had mixed results in the following year. Particularly notable were declines at Tesla after its recent split and at Nike Inc. after its 2015 split.

Top Tech News

  • Apple Inc. unveiled long-awaited new artificial intelligence features, including a partnership with ChatGPT maker OpenAI, and expects a personalized and unobtrusive approach to the technology to win over customers.

    • Billionaire Elon Musk said he would ban Apple Inc. devices from his companies if OpenAI’s artificial intelligence software was integrated at the operating system level, calling the merger a security risk.

  • British PC maker Raspberry Pi’s share price jumped on its first day as a listed company, giving a boost to London’s ailing IPO market.

  • Saudi Aramco’s venture capital arm has invested more money in Tenderd, a Peter Thiel-backed company based in the United Arab Emirates that uses artificial intelligence insights to reduce emissions.

  • A California lawmaker has withdrawn his planned ban on the social media app TikTok on state government devices. The response was a federal law that forces the parent company TikTok in the US to sell its app or the company will be shut down.

Results due on Tuesday

(Adds stock movement at market open in fourth paragraph. An earlier version corrected Microsoft Corp.’s name in seventh paragraph.)

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