ASML and Meta Platforms are potential candidates for stock splits due to high stock prices

From Nasdaq: 2024-08-10 08:33:00

Several AI companies like Nvidia, Broadcom, and Super Micro Computer split their stock or announced plans to do so, attracting retail investors. Stock splits don’t affect a company’s fundamentals, but ASML and Meta Platforms are potential candidates due to their high stock prices. ASML’s revenue has grown at a 25% CAGR from 2020-2023, and analysts expect further growth despite export restrictions to China. Meta Platforms has seen a 16% revenue CAGR and plans to expand into AR and VR products with 15% revenue CAGR expected from 2023-2026.♀♀ASML and Meta Platforms are both AI-driven companies with strong potential for growth, despite facing challenges. Buying stock in ASML could be a good investment as the company’s monopoly on chipmaking technology positions it well for the future growth of the semiconductor and AI markets.

Meta Platforms, the parent company of various social media platforms, has leveraged AI to analyze user data and generate targeted ads. The company has faced challenges but still managed to grow its revenue at a 16% CAGR from 2020-2023. Analysts expect further growth with a 15% revenue CAGR expected from 2023-2026. Meta Platforms is trading at 22 times this year’s earnings and might benefit from a stock split to generate more interest from investors.



Read more at Nasdaq: Stock-Split Watch: 2 AI Stocks That Look Ready to Split