Stock splits tend to create a lot of buzz in the market, especially when some of the most prominent companies announce a split. Whenever the stock prices hit a higher range, the management decides to split the stock and that is an opportunity for investors to load up on rock-solid businesses. A business that isn’t doing well will not announce a stock split. Hence, strong and successful businesses show strength and confidence when they split a stock.
2025 could be the year when Meta Platforms Inc. (NASDAQ: META | META Price Prediction) announces its first-ever stock split and Eli Lilly (NYSE: LLY), the pharmaceutical giant which split stock in 1997 could make the big move this year. Both the stocks are trading over $600 and have been on a rally.
Key points in this article:
- Meta Platforms and Eli Lilly are two rock-solid businesses that could announce a split this year.
- Both the stocks are on a rally and worth adding to your portfolio.
- If you’re looking for an AI stock early in the AI growth cycle, grab a complimentary copy of our “The Next NVIDIA” report. It has a software stock that could ride dominance in AI to returns of 10x or more.
Meta Platforms
Exchanging hands for $625, META stock is up 23% over the past six months but has dropped from the all-time high of $740. The stock is one of the Magnificent Seven stocks and its recent rally has made it an ideal candidate for a stock split. Whenever there is a strong run-up in the stock, companies consider a stock split, and Meta Platforms is the only company amongst the Magnificent Seven that has never split its stock.
After going public in 2013, Meta has been on a roller coaster ride and the path hasn’t been easy. The company has faced several allegations, revenue dips, and several lawsuits. However, the company has stood strong through the storm and is enjoying some of its best days. In the fourth-quarter results, Meta reported revenue of $48.39 billion, a 21% year-over-year jump, and reported daily active users of 3.35 billion.
The biggest source of revenue for Meta is advertising and there is ample space for growth. Because Meta’s wide umbrella of social media apps attracts billions of users daily, marketers will be more than willing to spend money on the platform. In 2024, it generated $160 billion through advertising. Meta is also known for investing heavily on artificial intelligence and virtual reality.
Meta is in a strong position to benefit from the growing use of AI and if the stock continues the rally, we could see a split announcement very soon. Wall Street is bullish on the stock with an average price target of $764.
Eli Lilly
Pharmaceutical company Eli Lilly is known for diabetes and weight loss drugs. The company has a solid pipeline of glucagon-like peptide-1 (GLP) drugs that help people manage weight and diabetes. The massive demand for these drugs has helped Eli Lilly report impressive revenue numbers and the stock has seen a rally since 2023.
As of writing, the stock is trading for $869 and is up 11% year-to-date. It has soared 14% in the past year but is down from the all-time high of $972. For the fourth quarter, the company saw a revenue of $3.5 billion for Mounjaro and $1.9 billion for Zepbound, its biggest and most successful drugs. However, it fell short of expectations due to low inventory and demand. I believe these two drugs will continue to see high demand and show a solid upward trajectory throughout 2025. The management is aiming for revenue in the range of $58 to $61 billion for 2025.
Eli Lilly is so much more than Mounjaro and Zepbound. It has an impressive pipeline of drugs and has recently seen breakthrough efficacy for Atopic Dermatitis in a study. Its new medicines for Alzheimer’s treatment Kisunla, and the cancer drug Jaypirca could be the next two blockbusters.
Its other two candidates in weight loss, etatrutide and orforglipron are in Phase 3 and are being developed as therapies for sleep apnea and diabetes besides weight loss. An expanding drug pipeline makes the stock a compelling buy this year. If you thought it was too late to own the stock, wait for it to announce a split.
Wall Street believes the stock has the potential to keep moving higher and has an average price target of $1029, an 18% upside from the current level. The company is likely to keep adding more drugs to its lineup and this will reflect on the revenue. As it keeps expanding, the stock price will soar, making it an ideal stock for a split.
Top Gaining Stocks
Top Losing Stocks