Some stocks facing potential plunges up to 98% due to recent stock splits.

From Nasdaq. August 5, 2024 5:06am:

Stock splits are a hot trend on Wall Street, with 12 companies announcing them recently. Forward splits make shares more affordable for retail investors, while reverse splits boost share prices to meet stock exchange standards. While many predict these stocks will rise, some analysts are forecasting potential plunges of up to 98%.

Nvidia, after a historic 10-for-1 forward split, is facing predictions of a 98% crash by financial experts. Concerns about a market bubble, lack of solid AI deployment plans by businesses, and increasing competition are potential factors that could negatively impact the stock performance of the AI hardware leader.

MicroStrategy, known for its Bitcoin holdings, could see an 87% decline says one analyst. The company’s valuation is inflated due to its Bitcoin bets and financing strategies. With Bitcoin network issues and a potential bear market, the company may struggle in the future.

Cintas, a corporate uniform provider, could drop by 23% per one analyst’s forecast. The company’s high valuation, cyclical business nature, and economic indicators pointing towards a possible downturn in the U.S. economy are factors contributing to this prediction. However, Cintas’ strong capital-return program may help mitigate some of the potential downside.

Read more at Nasdaq: 3 Stock-Split Stocks That Can Plunge Up to 98%, According to Select Wall Street Pundits