Meta is splitting its stock about two-for-one. It is doing it with a new share class, not a traditional split, according to a Motley Fool column by analyst Keithen Drury published Nov. 7.
The new Class C shares carry no voting power. Drury writes that Meta can hand them out for acquisitions or employee pay without Zuckerberg losing voting control. He adds that this "could be a red flag for some investors."
The column says Class C shares start at the same value as Class A shares. Over the long term, it says, they will be worth slightly less. It points to Alphabet's split-share structure, where one class trades at a discount to the other.
The contrast is Sandisk. Drury says it is doing a traditional eight-for-one split, effective Nov. 19. He says Sandisk's latest-quarter revenue rose 378% year over year. Meta's Q3 revenue rose 26% to $64.6 billion, which he calls respectable.
Drury picks Sandisk to buy and hold. He says Meta suits investors who want a set-it-and-forget-it holding. He says he holds positions in Alphabet and Meta, and The Motley Fool recommends both.
The article quotes no Meta statement on the share class. The material shows no company response.
Voting control, preserved.