From Nasdaq:

Stock splits don’t always boost stock prices, but they can lead you to successful companies. After a split, companies may offer more shares to current stockholders. Despite not necessarily triggering immediate gains, successful companies can deliver continual growth and success over time. Amazon and Alphabet are two stock-split players to consider buying now for future gains.

Amazon split its stock in 2022, and saw its shares climb in the double digits in 2023. Despite this increase, the stock still trades at about half of what it traded for a couple of years ago. With Amazon’s strong position in e-commerce and cloud computing, as well as its cost-structure improvements, it could deliver more gains in the future.

Alphabet also recently split its stock after years of earnings growth. The company maintains dominance in the internet search market, boasting a 91% share. This extensive market presence also attracts advertisers, and the company’s cloud computing business is experiencing high growth. With a low forward earnings multiple and a proven track record, Alphabet is positioned for future earnings and market share growth.



Read more: 2 Top Stock-Split Stocks to Buy for 2024