Meta's High Share Price May Be a Barrier to Dow Inclusion

Meta Platforms' shares have not been split since its initial public offering in 2012. Despite reaching a record high of $790 in August 2025, the company has not followed in the footsteps of fellow tech giants Amazon and Nvidia, which split their stocks before joining the Dow Jones Industrial Average.

The price-weighted Dow index favors companies with higher-priced shares, making Meta's high share price a potential barrier to entry. However, Goldman Sachs and Caterpillar, both members of the Dow, trade at around $917 and $812 respectively, similar to Meta's current price of $721 per share.

A 10-for-1 stock split would reduce Meta's weight in the index from around 8% to below 1%. This is not a significant change, but it could be an issue. When Verizon Communications was dropped from the Dow in June, its low stock price contributed to its exclusion.

Meta's advertising business continues to drive growth, with average ad prices increasing by 12% year-over-year in the second quarter. However, ad impressions grew at a slower rate of 14%, indicating that more of the growth is coming from pricing.