Prediction: 2 Magnificent Companies That Can Kick Off 2026 With a Historic Stock-Split Announcement

1 week ago 7

Sean Williams, The Motley Fool

Mon, January 5, 2026 astatine 2:26 AM CST 7 min read

Excitement surrounding banal splits remains a cardinal operator of capitalist optimism connected Wall Street.
The astir logical campaigner to beryllium the blockbuster banal divided of the twelvemonth is simply a unsocial subordinate of the "Magnificent Seven."
Meanwhile, the astir influential subordinate of the iconic Dow Jones Industrial Average checks each the close boxes for a guardant split.
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Although artificial quality (AI) has been the hottest inclination connected Wall Street implicit the past 3 years, it's not the lone catalyst liable for sending the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite to record-closing highs successful 2025. Investor euphoria surrounding banal splits successful brand-name companies has played a cardinal relation successful lifting the tide for the banal market.

A banal divided is an lawsuit that allows a publically traded institution to cosmetically change its stock number and stock terms by the aforesaid factor. These changes are superficial successful the consciousness that they don't set a company's marketplace headdress oregon successful immoderate mode impact its underlying operating performance.

While banal splits tin set a nationalist company's stock terms higher oregon lower, investors presumption these directional changes very differently. Reverse splits, which are designed to summation a company's stock price, are typically shunned by investors. This benignant of divided is often undertaken by struggling businesses that are attempting to debar delisting from a large banal exchange.

A U.S. dollar coin divided successful fractional that's acceptable atop a insubstantial banal certificate for shares of a publically traded company.

Conversely, investors usually enactment up to bargain shares of companies announcing and completing guardant splits. A institution that has to little its stock terms to marque it much nominally affordable for retail investors who can't acquisition fractional shares done their broker is astir ever doing thing right. In different words, these are companies that often person a affluent past of out-executing and out-innovating their competition.

What's more, companies conducting guardant splits person historically outperformed the benchmark S&P 500 successful the 12 months pursuing their announcement, dating backmost to 1980, according to a survey from Bank of America Global Research. This is wherefore investors are ever connected the lookout for Wall Street's adjacent blockbuster stock-split stock.

As we footwear disconnected 2026, the puzzle pieces are successful spot for 2 magnificent companies to denote historical banal splits.

Social media titan Meta Platforms (NASDAQ: META) is 1 of 7 members of the "Magnificent Seven." These are Wall Street's astir influential businesses, and 7 of the 12 nationalist companies astir the globe to person ever reached the $1 trillion valuation mark.