From Nasdaq OMX Group:



Wall Street has experienced a lot of volatility over the past four years, with various indices swinging back and forth between bear and bull markets. Investors often turn to profitable, well-established companies for safety in times of high equities volatility. Over the past decade, FAANG stocks have served this purpose, but in recent years, stocks enacting splits have also been sought after. A stock split is a way for a publicly traded company to alter its share price and outstanding share count without impacting its market cap or operating performance. Forward-stock splits make shares more affordable for everyday investors, while reverse-stock splits are used to secure continued listing on a major stock exchange. Several prominent companies have enacted forward splits since July 2021, which have been popular among billionaire investors. The companies noted include Amazon, Alphabet, and Tesla, and the reasons for investing in these companies vary, including strong operating cash flow, dominance in internet search, and the launch of new products like Tesla’s Cybertruck. Despite the potential for growth, there are also some concerns, such as Tesla’s pricing strategy being based on demand and Elon Musk’s track record of unfulfilled promises. Overall, these companies are seen as attractive investments for billionaire fund managers ahead of 2024.



Original: 3 Stock-Split Stocks Billionaires Are Piling Into Ahead of 2024