The next inventory on Wall Street is only one logical choice, not the company you might think of

With a few exceptions, investors have already had a close-range trend or innovation that can attract their attention (and cash) for more than three decades. The rise of artificial intelligence (AI) has been a major catalyst for the past two and a half years Dow Jones Industrial Average,,,,, S&P 500and Nasdaq Composite Materials Go to a new high.

But AI isn't the only reason Wall Street bull market celebrates its second anniversary in October. Investor excitement surrounding announced stock splits in influential businesses has also driven wider markets.

Image source: Getty Images.

Stock splitting is an event that allows a publicly traded company to adjust its share price and the number of unsold shares. These changes are purely cosmetics and will not lead to adjustments to the company's market value or operating performance.

Although there are two varieties of stock segmentation, they are certainly not equal in the eyes of investors. Investors usually frown. This type of split is often taken from the position of operational weaknesses and is often to avoid the provisions that stand out from major stock exchanges.

At the same time, investors absolutely like listed companies that complete forward stock splits. This type of split is designed to lower the company's share price so that it is nominally affordable for investors who cannot buy fractional shares through brokers.

A business that moves forward and splits Almost always surpasses peers in innovation and execution. Last year, including Nvidia,,,,, Broadcom,,,,, Chipotle Mexican Grilland Walmartcomplete forward split.

So far, in 2025, the three name companies have made large-scale investments and will soon be fourth.

While stock shares have started to slow this year, the number of industry-leading companies that have recently announced a forward split has risen recently.

What auto parts suppliers start O'Reilly Auto (Nasdaq: Oli) Its largest stock allocation was announced in mid-March: 15 to 1. If approved by the company's shareholders during the May 15th annual meeting, it will take effect after the end of the June 9th transaction.

O'Reilly's stock is hardly able to stop it due to the company's enviable stock buyback program. Follow the pace of competitors autozoneSince its start in 2011, O'Reilly Automotive has repurchased nearly $26 billion worth of common stock, reducing its outstanding shares by 59.4%. Companies with stable or growing net income and ongoing buyback programs tend to see their earnings per share (EPS) climb.

Automation electronic brokerage company Interactive Broker Group (NASDAQ: IBKR) After the end of trading on June 17, the party joined in mid-April, announcing its first ever stock split - 4 to 1 - will take effect.

Interactive brokers benefit from the long growth of the U.S. economy and (usually) optimism about Wall Street. It sees its customer base, the number of equity held by customers on its platform, and the number of transactions completed by its Accounthorders have grown over the past two years. Sprinkle higher interest rates on margin loans, which is a near-perfect situation for this famous brokerage firm.

The third name of the act is the wholesale distributor of industrial and construction supplies fixed (NASDAQ: Fast). This will be Fastenal's 9th distribution as a public company in 38 years - it is completing a 2-to-1 split after the end of May 21 - with its stock rising by nearly 125,000% since its IPO.

In addition to strong cyclical links, so does Fastenal’s supply chain integration and innovation. The company's on-site, Internet-connected FastVend solution helps generate immediate sales and helps Fastenal better understand customers' supply chain needs and costs.

The most important question is: Which brand company will be the next stock on Wall Street?

On the surface, there seems to be enough candidates moving forward. As of May 8, 50 shares ended the meeting with a share price of at least $500.

But there are many more companies to choose which company is the next stock on Wall Street, rather than just screening at high stock prices.

For example, the company's board of directors must be expected to provide nominally cheap shares to day-to-day investors. The company likes it Berkshire Hathaway and NVR No interest in allocating stocks, Costco WholesaleThe management team is confident that the basic access rights of purchases based on fractional shares deviate from the demand for stocks.

Another big puzzle that decides the next company to separate is institutional retail ownership. Institutional investors often deal with millions or billions of dollars in managed assets, but are not restricted by publicly traded companies with high stock prices. Therefore, companies with higher institutional ownership have weaker cases of allocating stocks.

For example, Autozone, Streaming Goliath Netflixand travel scene Booking hold At the end of the May 8 meeting, about $3,675 per share, $1,144 per share and $5,165 per share. Without partial purchases, some retail investors may not be able to buy these stocks.

However, you will find that investors each day only account for 11.3%, 19.6% and 9.8% of investors in Autozone, Netflix and booking holdings, respectively. These companies have no immediate motivation to split.

Professional trader using a stylus to interact with a fast rising inventory chart displayed on a tablet.
Image source: Getty Images.

But there is a company that became a logical stock split candidate: social media colossus and the "Magnificent Seven" member, Meta Platform (Nasdaq: RMB).

Why do you want RMB? For beginners, its stock price exceeded $740 in February and has remained hovering around $600 as of this writing. Meta has never had a stock split, but nearly 28% of its outstanding shares are held by day-to-day investors. In my opinion, the percentage of retail investor ownership is higher, moving the dollar to the front end of the inventory split candidate.

More importantly, the fundamental reason why its share price should continue to rise, inspiring among the heavy retail investors whose nominal stock prices become heavy, those retail investors are unable to get score purchases.

Meta's backbone is its social media assets, which include leading destinations such as Facebook, Instagram, WhatsApp, Threads and Facebook Messenger. In March, Meta's app family was collectively called 3.43 billion active people, more than any other company for social media. A wider audience than any other platform, Meta usually has excellent advertising pricing power.

For the time being, advertising accounts for about 98% of the company's net sales and is profitable.

However, Meta's future also depends largely on the development of artificial intelligence. CEO Mark Zuckerberg is actively investing in AI-Accelerated data centers, which should help from the company’s continued meta-ambition to improving the functionality and user launch potential of Facebook’s social media advertising platform.

To solve the problem, Meta is sitting in the capital. It ended in March in March, with operations of $70 billion in cash-equivalent and marketable securities in the first three months of 2025 generating nearly $17.6 billion in cash.

A stock that costs $500 (or more) per share may have a lot of stock trading, but does not fit into Wall Street’s next stock stock stock model, just like the meta platform.

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Randi Zuckerberg is a sister of former marketing development director, Facebook spokesperson, and Meta Platform CEO Mark Zuckerberg, and a member of the Motley Fools’ board of directors. Sean Williams has a position on the metaplatform. Motley Fool owns a position and recommends Berkshire Hathaway, Booking Holdings, Chipotle Mexican Grill, Costco Wholesale, Interactive Brokers Group, Meta Platforms, NVR, Netflix, Netflix, Nvidia and Walmart. Motley Fool recommends Broadcom and recommends the following options: $175 for the Interactive Broker Group Phone, short-term for January 2027, $185 for the Interactive Broker Group Phone, and $55 for the Mexican Grill in June 2025. Motley Fool has a disclosure policy.

The next stock on Wall Street stock has only one logical choice, and this is not the company you might think of originally published by Motley Fool