Meta Plans 2027 Stock Split, Likely to Strengthen Zuckerberg's Control of the Company

At a glance

Meta plans to split its stock next January by distributing a new class of shares. Analysts say this method will further strengthen the control of founder Mark Zuckerberg over voting. The outlet said the company's earnings are solid, but whether to invest depends on whether you believe in Zuckerberg's long-term vision.

Key points

1. 1

   Instead of splitting existing shares next January, each voting A share will receive one non-voting C share.

2. 2

   Zuckerberg holds 99.7% of the B shares, which carry ten times the voting power, so he already has a majority of the votes.

3. 3

   Revenue rose 26% from a year earlier, and the 12-month forward price-to-earnings ratio (the stock price multiple of expected earnings over the next year) is 18 times.

4. 4

   Meta Muse, the company's latest AI app, has gained many early users and was cited as a key to making money from AI.

Why it matters

People considering buying stock need to know whether the company's governance structure is changing in order to make an investment decision.