Stock split at MicroStrategy might not guarantee stock performance boost, with mixed results from past splits.

From Nasdaq
July 24, 2024 7:00 AM:

Stock splits have been causing excitement among investors, but they don’t necessarily lead to significant boosts in stock performance. MicroStrategy announced a 10-for-1 stock split effective August 1, with shares up over 180% this year. However, previous stock splits for companies like Chipotle and Nvidia did not result in huge gains.

Despite the hype around stock splits, the performance of the stock post-split doesn’t always improve. Data shows that companies like Chipotle, Nvidia, and Walmart experienced varying results after their respective stock splits. Walmart, however, has been performing well post-split, offering a more stable investment option compared to Chipotle and Nvidia.

MicroStrategy’s heavy investment in Bitcoin could be a key factor in its stock performance, given its large holding of the cryptocurrency. The company’s stock price has historically trended alongside Bitcoin’s movements. However, MicroStrategy’s profitability remains uncertain, making it a risky investment even with the upcoming stock split.

Investing in MicroStrategy may seem attractive, but it’s important to consider all factors before making a decision. While the company has had a strong year, its reliance on cryptocurrency and lack of profitability make it a speculative investment. It’s crucial for investors to weigh the risks involved before investing in a company like MicroStrategy.

Before investing in MicroStrategy, investors should take note of the advice from The Motley Fool Stock Advisor team. While MicroStrategy didn’t make their list of 10 best stocks to buy now, their recommendations have historically outperformed the S&P 500. Considering the potential for high returns with the right investment choices, investors should carefully evaluate their options before investing in MicroStrategy.

Read more at Nasdaq: Will a Stock Split Help Send MicroStrategy’s Stock Higher in the Second Half?