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Why Avoiding Capital Gains Can Sometimes Cost You More

18 hours 33 minutes ago
High-net-worth investors often resist selling highly appreciated stocks because they dread the tax bill. But avoiding taxes can leave retirement wealth dangerously concentrated — and turn a manageable capital gain into a much larger portfolio loss.

Meta is splitting its stock: Here’s why, when, and what it means for investors

18 hours 38 minutes ago

On Wednesday, Meta Platforms released its third-quarter earnings report with some news: a stock split is coming. 

The owner of Facebook, Instagram, and WhatsApp plans to split its shares (Nasdaq: META) in a move that will drop the company’s per-share stock price.

If all goes well, Meta should end up with more money to fund its ongoing AI goals, but without forcing CEO Mark Zuckerberg to give up any of his voting power. 

Here’s everything you need to know about Meta’s upcoming stock split. 

What is a stock split?

A stock split is an option that companies can use to increase the number of shares they have available. They might choose this to lower their stock price, making investment in the company more accessible, without changing the company’s overall value. 

In this case, Meta explains in a filing with the Securities and Exchange Commission (SEC) that the additional shares will be a new class of non-voting Class C common stocks.

Taking such action ensures that current voting power—whether it be Zuckerberg’s or an investor’s—remains undiluted. 

How much is Meta splitting the stock by?

Meta has opted for a two-for-one stock split. This means that each share’s value will be split in half. Every investor of a common or supervoting stock should receive a second stock for each share they currently hold. Meta will distribute these additional shares as a one-time dividend. 

When do Meta’s shares split? 

The new shares will be effective on January 19, 2027.  

What will Meta’s new split-adjusted stock price be? 

We won’t know Meta’s split-adjustment stock price until the day of record ahead of the split. The company’s stock is down over 2% in premarket on Thursday morning after closing at $697.52 a share on Wednesday.

How does the stock split help Meta? 

Meta reported record high revenue for quarter three—up 26% year-over-year to $61.6 trillion. However, its free cash flow was negative for the first time in more than a decade at negative $2.12 billion. 

The social media giant has been funneling its money into AI while also facing significant penalties in court, including $25 billion yesterday in New Mexico after a judge found Meta lied about how it handled users’ data. 

Following the split, Zuckerberg will be allowed to sell 20% of his nonvoting shares—potentially another motivation for the split.

California’s Prop.40, on the ballot in November, would issue a one-time 5% tax on all billionaires living in the state (about 259, including Zuckerberg). 

Zuckerberg has previously committed to living in the same state as Meta’s headquarters for at least eight years, the company explained in its SEC filing, although this pledge was barring “unforeseen circumstances.”

GM wants to turn your car into a personal AI assistant on wheels

18 hours 38 minutes ago

When General Motors launched OnStar 30 years ago, it was a novel way to connect people to the internet while they were inside their cars: Press the button on the rearview mirror, and the system calls an OnStar agent who can see your location, give directions, and send out first responders in the event of a crash.

That was years before the first iPhone debuted. Today, most people carry smartphones that can give directions and detect crashes. 

To go beyond those use cases, OnStar is now getting an upgrade for the AI age—one that turns it into more of a personal assistant.

“Hey OnStar, it’s getting warm in here,” you could say while driving. In response, the temperature in your vehicle’s cabin will automatically adjust, without you having to navigate your car’s touch screen. Say “It’s too dark in here,” and it will turn on the interior lights.

[Image: GM]

Or you might ask what that beeping you heard was, and it will explain if it was from a safety feature, like a sensor that alerts you if you’re close to another vehicle or going above the speed limit. 

There’s still the opportunity to connect with a real person through OnStar, GM says, as the tool will be “complemented” by human support. If you tell OnStar you’re worried about a warning you saw on your dash, for example, it may ask if you want to connect to a live advisor. 

“Proprietary connected intelligence”

OnStar AI Assistant will launch later this year in the 2027 Cadillac LYRIQ through an over-the-air update, before rolling out to more GM vehicles. 

GM did integrate Google Gemini for a conversational AI experience into some of its vehicles earlier this year via a software upgrade, but the company says OnStar AI Assistant goes beyond Gemini’s capabilities.

“This is our proprietary connected intelligence,” Sterling Anderson, GM’s chief product officer, said at an event on Wednesday announcing the news. “It’s designed to anticipate your needs, to provide timely help, and to make every drive more personal.”

[Photo: GM]

Though it will leverage some power from general purpose LLMs, he added, it was developed internally, and trained on GM’s vehicles and sensor data. Then, it can adapt to become more personalized—based on the permissions and privacy controls you allow, GM says. 

You’ll also be able to access OnStar AI via an app, which lets you plan road trips or ask more specific vehicle questions—like uploading a picture of a boat, and asking if your specific model could tow it.

“OnStar will become such an important and central part of our products that starting next summer, we’re going to unify all of our mobile apps under the OnStar name with intelligent AI capabilities built in,” Anderson said. 

An AI assistant for every area of life

GM sees OnStar AI Assistant as a way to help drivers handle moments inside their vehicles: it can turn on dome lights or open the glove box without you pressing any buttons. It can give you real-time updates on your EV’s range or your tire pressure, or surface information before you even think to ask, like your oil levels.

But GM also paints a picture of an AI assistant that integrates into all areas of your life, beyond your car. 

Emily Bowman, director of vehicle interface design, gave a presentation on GM’s future visions for the technology. The AI could connect to your family calendar and confirm an appointment rescheduling, or figure out if your partner is closer to your child’s school, and send them a text to do pick up that day.

On your morning commute to the office, you could ask OnStar AI to pull up notes from a meeting, draft a summary, and send it through your email. 

And on your drive home, you could ask it to launch “relax mode,” which could dim the lights, turn on the seat massager, and emit a relaxing fragrance into your car’s interior. (That feature would be coupled with GM’s autonomous driving technology, which the automaker is working to scale up and expand.)

You could even pair it with your smart home devices, asking it to turn on your house lights or open your garage door. Some of these features may come by 2029, Bowman said.

Others simply illustrate the direction GM says it’s heading: one, it seems, where your car is a personal assistant on wheels.

In one demo of the technology, Anna Santos, director of product management for voice and vehicle AI, asked OnStar for ideas for matching family Halloween costumes.