Although artificial intelligence (AI) has been Wall Street's most impactful catalyst over the last three years, it's not the only trend responsible for lifting the broader market to new heights. In addition to AI stocks, investors can't seem to get enough of companies enacting stock splits.
A stock split allows a publicly traded company to cosmetically adjust its share price and outstanding share count by the same magnitude. These changes are "cosmetic" in the sense that they don't affect a company's market cap or its operating performance.
While stock splits come in two varieties, forward and reverse, investors treat one far more favorably than the other. Investors almost always gravitate to companies announcing and completing forward splits, which aim to reduce a company's share price to make it more nominally affordable for retail investors who can't purchase fractional shares through their broker.
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Public companies that enact forward splits are typically out-executing their competition and are at the forefront when it comes to innovation. Not surprisingly, a Bank of America Global Research study found that companies announcing forward splits significantly outperformed the S&P 500 in the 12 months following their announcement, when back-tested to 1980.
Following several high-profile stock splits in 2025, the wait for the first blockbuster stock split announcement of 2026 is over. Online travel giant Booking Holdings (BKNG 2.42%) has officially kicked off stock-split euphoria in 2026 -- and has opened the door for a foundational company that's rallied over 1,600% since its initial public offering (IPO) to follow in its footsteps.
Booking Holdings flies high with its largest-ever forward stock split
After the closing bell tolled on Feb. 18, the parent company of Booking.com, Priceline, and Kayak announced its fourth-quarter and full-year operating results, as well as unveiled a historic 25-for-1 forward split, courtesy of its board. When Booking's split takes effect on April 2, it'll lower the company's nominal share price from $4,076.79 (where it closed on Feb. 20) to closer to $163.
There's little question that retail investors inspired this forward split. Without access to fractional share purchases, everyday investors would have to save up close to $4,100 to purchase a single share. Lowering this figure to $163 will make it easier for retail investors to participate in Booking Holdings' growth story.
NASDAQ: BKNG
Key Data Points
Shares of the company have soared nearly 25,000% over the trailing 25-year period, including dividends, representing a compound annual growth rate of approximately 24%. Gains of this magnitude don't occur by accident. They're the result of sustained competitive advantages.
For instance, Booking Holdings is the dominant online travel services provider in Europe and has enjoyed outsize sales growth from Asia. Though the U.S. online travel industry is highly competitive, Booking has thrived internationally.
The company's success also reflects its Connected Trip strategy. Instead of travelers booking items separately, Booking Holdings has focused on keeping users within its ecosystem to encourage the bundling of flights with car rentals, hotels, and travel experiences. Keeping more money under its umbrella is a margin-expanding venture.
Lastly, Booking has a phenomenal capital-return program. While a nearly 1% dividend yield might not be much to look at, the company's share buybacks have made waves. Since 2014, Booking has reduced its outstanding share count by almost 39%. Share repurchases have provided an undeniable lift to its earnings per share.
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History will be made if this "magnificent" company splits its shares next
Based solely on their high share price, dozens of high-profile companies could follow in Booking's footsteps. But there's more to a stock split announcement than just a company's share price.
Usually, a public company needs a sizable percentage of its shares to be held by retail investors to encourage its board to announce a split. As of Feb. 20, over 30% of Meta Platforms' (META 2.52%) outstanding shares were held by non-institutional investors. This (and its $656 share price) makes it the ideal candidate to follow in Booking's footsteps and announce a blockbuster stock split in 2026.
What would make this stock split announcement so historic is that Meta is the only "Magnificent Seven" member that hasn't previously split its shares. Although Meta went public more recently than the other six members of the Magnificent Seven, a 1,620% return spanning almost 14 years merits action from the board.
Meta Platforms' sustainable competitive advantages suggest its shares will head even higher over the long run, making a blockbuster stock split announcement all the more pertinent.
NASDAQ: META
Key Data Points
The company's foundation continues to be its social media assets, including Facebook, WhatsApp, Instagram, Threads, and Facebook Messenger. In December, Meta's family of apps attracted an average of 3.58 billion daily users -- far more than any other social media platform. Its family of apps ensures exceptionally strong ad pricing power during periods of economic expansion.
Furthermore, Meta CEO Mark Zuckerberg is aggressively investing in an AI-driven future. While many of his company's artificial intelligence investments won't pay dividends for years to come, the incorporation of generative AI solutions into Meta's social media advertising platforms has enabled businesses to create static and video messages catered to individual users. Gen AI can vastly improve ad click-through rates and boost Meta's already impressive pricing power.
Bringing everything together is the company's cash-rich balance sheet. Zuckerberg's company closed out 2025 with about $81.6 billion in combined cash, cash equivalents, and marketable securities, and it generated $115.8 billion in net cash from its operations last year. It's one of Wall Street's few companies that can afford to aggressively invest in high-growth initiatives without disrupting its foundational operating segment(s).
Arguably, no company is more perfectly positioned to become Wall Street's next stock-split stock than social media titan Meta Platforms.
