Costco opts out of stock split despite hitting $1,000 share mark

From Nasdaq: 2024-12-23 08:45:00

2024 has seen a surge in stock splits, with many leading companies choosing to split their shares. However, some high-priced stocks like Berkshire Hathaway and Costco have opted out of splitting their shares, despite hitting significant price milestones.

While stock splits lower share prices and increase share count, they don’t impact a company’s overall value or performance. Splits historically attract more investors by making shares more affordable and increasing liquidity, indicating optimism for future gains.

AI tech stocks, including Nvidia, have split their shares amid the AI revolution. Other tech giants have also followed suit, benefiting from the AI boom and splitting their shares in recent years.

Costco, despite its impressive stock performance, has no plans for a split. The company’s CFO cited the availability of fractional share buying, making stock splits less necessary for retail investors and employees. Costco’s historical outperformance and independent approach may delay any future splits.

While fractional share buying is widely available, not all accounts may offer it. Costco’s large employee base suggests varied access to fractional shares. Waiting for a split may not be necessary for potential investors; consider seeking a brokerage with fractional share capabilities.

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Read more at Nasdaq: Here’s Why Costco Says It Has No Plans to Split Its Stock at $1,000 Per Share