The Case for Meta Platforms and Coinbase Global: Understanding Stock Splits and Investment Potential in 2026

Why Stock Splits Matter for High-Performing Companies

Stock splits are often misunderstood as purely cosmetic corporate actions. Yet they signal something more profound: management confidence in sustained growth. When executives authorize a split, they’re betting the stock will continue its upward trajectory. Different types of splits exist—whether a 2-for-1, 3-for-1, or other ratios—each reflecting management’s assessment of where the stock price is headed.

Meta Platforms and Coinbase Global have both appreciated dramatically over the past three years, with gains of 450% and 550% respectively since December 2022. Both now trade at triple-digit share prices, making them natural candidates for split discussions in 2026. Yet the real investment thesis extends far beyond split speculation.

Meta Platforms: Betting on AI-Driven Advertising

Meta’s remarkable 450% surge over three years stems largely from its aggressive artificial intelligence investments. The company dramatically cut operating costs while positioning itself at the forefront of AI-powered advertising innovation.

The initial investor enthusiasm of 2023-2024 gave way to more cautious sentiment in 2025 as Meta unveiled its substantial AI infrastructure spending plans. Management guided for capital expenditures between $70 billion and $72 billion in 2025, with expectations to exceed $100 billion in 2026. This caught many investors off guard, causing shares to retreat despite earlier gains.

However, Meta’s AI spending is already demonstrating tangible returns. Last quarter’s earnings revealed something remarkable: simultaneous increases in both ad prices and ad impressions. This dual metric improvement, rare for Meta, demonstrates that its algorithms are meaningfully improving ad targeting while maintaining strong user engagement through superior content recommendations.

Looking ahead, Meta’s competitive advantages from AI investment are substantial. The company is developing AI agents specifically designed for small business advertisers, enabling campaign creation and optimization at scale. This should expand both the advertiser base and spending per advertiser. Additionally, Meta’s AI chatbot is growing rapidly and represents a largely untapped monetization opportunity.

Wall Street’s median price target stands at $837, implying approximately 25% upside from current levels. With shares firmly in triple-digit territory, a stock split announcement would align with historical precedent for high-performing companies. Different types of splits could serve different strategic purposes—whether reducing the share price to attract retail investors or signaling confidence to the broader market.

Coinbase Global: Navigating Cryptocurrency Market Dynamics

Coinbase’s 550% appreciation reflects its positioning as a trusted custodian in a historically corruption-prone industry. This reputation advantage has allowed the exchange to command premium transaction fees, its primary revenue driver.

The cryptocurrency market’s recent downturn has tempered enthusiasm, leaving Coinbase essentially flat year-to-date despite trading up nearly 70% at its peak. Bitcoin’s price volatility directly impacts trading volume and customer activity.

Yet several structural trends support a bullish long-term outlook. Coinbase benefits from a powerful network effect: its reputation attracts traders seeking liquidity, which in turn attracts more participants, creating a virtuous cycle. This positions Coinbase advantageously for capturing institutional flows, particularly as cryptocurrency derivatives and premium institutional products gain traction.

The emergence of cryptocurrency-focused ETFs might seem like a competitive threat. However, Coinbase has secured the majority of custodian contracts for cryptocurrency funds, creating a high-margin revenue stream insulated from trading volume fluctuations.

Coinbase’s second major business pillar centers on USDC, its stablecoin partnership with Circle. By investing the collateral backing USDC in U.S. Treasury bills, Coinbase generates interest income. While the Federal Reserve’s interest rate cuts pose headwinds, Coinbase has strategically restricted yield-sharing to premium Coinbase One subscribers, protecting profitability.

Wall Street analysts project a median price target of $372, suggesting roughly 53% upside potential. At a forward P/E multiple of approximately 36, the valuation reflects elevated expectations, yet a sustained Bitcoin bull run in 2026 could easily justify further appreciation.

Coinbase’s shares already occupy the triple-digit price range, and management’s comfort with potential volatility will ultimately determine split timing. Should different types of splits be implemented, management would likely prioritize longer-term investor positioning over short-term trading considerations.

The Bottom Line: Long-Term Value Beyond Split Speculation

While stock split announcements can serve as catalysts for near-term appreciation, the true investment case for both Meta Platforms and Coinbase Global rests on fundamental trends. Meta’s AI capabilities are generating measurable improvements in advertising economics. Coinbase’s custodian relationships and stablecoin partnerships create defensible competitive moats.

For investors evaluating these companies, focus on the underlying business dynamics—AI monetization at Meta and institutional adoption of cryptocurrency services at Coinbase—rather than split timing. If these fundamental drivers deliver as expected, stock splits in 2026 would merely confirm what the market already believes: that both companies merit significantly higher valuations.