From Nasdaq: 2024-05-19 04:10:00

Several technology companies, including Tesla, Nvidia, Amazon, Alphabet, and Apple, have recently undergone stock splits. ServiceNow (NYSE: NOW) is a potential candidate for a stock split due to its rapid stock price growth. Stock splits increase the number of shares while reducing the share price. Although ServiceNow’s share price is high, the company may benefit from a stock split to attract new investors.

Investors often view stock splits as an opportunity to buy shares at a lower price, even though the company’s value remains the same. ServiceNow’s stock price has surged since its IPO in 2012, making it a prime candidate for a split. Despite its seemingly expensive share price, ServiceNow is trading at a discount on a price-to-sales basis compared to other SaaS growth stocks.

ServiceNow’s entry into the AI landscape has fueled revenue growth and partnerships with industry giants like Microsoft, Nvidia, and IBM. Despite being less known in the AI field than its competitors, ServiceNow is a solid investment option with long-term growth potential. Investors should consider buying shares based on the company’s business results rather than a potential stock split.



Read more at Nasdaq: Prediction: This Will Be the Next Artificial Intelligence (AI) Company to Split Its Stock