On the Facebook stock split date, the price of your FB shares may change, but the split won't affect the value of your Facebook stock.
It's true, though, the new shares you receive in the 3-for-1 Facebook stock split won't hold any voting power. But according to the Los Angeles Times, Facebook Inc. (Nasdaq: FB) CEO Mark Zuckerberg owned 60% of the voting power before he proposed the stock split.
That means he already held the deciding vote on all matters before the split was announced.
The proposed vote passed on June 20, but an official Facebook stock split date has not been set.
Still, our readers want to prepare themselves and have been asking us what the split will look like on the Facebook stock split date.
Here's what to expect...
On the Facebook Stock Split Date, Here's What Will Happen
You will receive three shares of FB stock for every one share of FB stock you own. The price of Facebook stock will be different, but the value of your FB stock will remain the same.
For example, the Facebook stock price opened at $130.09 this morning. If the Facebook stock split date was tomorrow, investors would receive three shares of FB stock at $43.36 per share for every one share they own.
This may cause some investors to panic when they first look at their account.
But because you have three shares, it's actually the same value as your original FB share price.
Fundamentally, nothing will change about owning Facebook stock on the Facebook stock split date.
You won't have to make any adjustments to your portfolio on the day of the split.
There's still not an official Facebook stock split date, but our readers have asked us how to play FB stock ahead of the 3-for-1 split.
Here's what you need to do ahead of the split...
How to Invest Before the Facebook Stock Split Date
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The Facebook stock price has rewarded shareholders over the last year, climbing 32.30%. In comparison, the S&P 500 has climbed just 7.79%.
But there are even more gains ahead of the Facebook stock split date. That makes FB stock worth adding to your portfolio before it climbs even higher...
You see, Facebook is more than just a social media company. Zuckerberg has used his visionary leadership to purchase companies and enter markets that will generate billions of dollars for Facebook.
One of the biggest reasons the Facebook stock price will climb ahead of the Facebook stock split date is Instagram.
Instagram generated between $650 million and $750 million in revenue in 2015.
And it gets better...
Credit Suisse projects Facebook will generate $3.2 billion in revenue in 2016.
Most analysts also believe FB stock has room to run before the Facebook stock split date...
According to FactSet statistics, analysts have a one-year price target of $157.37 for the Facebook stock price. That means the Facebook stock price could climb 20% between now and next year.
But Money Morning Director of Tech & Venture Capital Michael A. Robinson has an even bolder prediction.
He believes that by 2020, the FB stock price will trade for $250 per share.
From today's opening price, that's a potential profit of 92% in less than four years. Here's the full report on why Facebook stock could soar to $250.
The Bottom Line: The value of FB stock will not be affected on the Facebook stock split date. The only thing that will change after the FB stock split date is that shareholders will have three shares instead of one. And because of Instagram's revenue growth and leadership by CEO Mark Zuckerberg, the FB stock price will continue to climb before the official Facebook stock split date is announced.
Up Next: Our Facebook Stock Price Analysis Shows Major New Catalyst
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