Nvidia's stock split announcement may inspire Microsoft and Meta Platforms to split shares.

From NASDAQ: 2024-05-28 10:40:59

Nvidia’s stock split announcement and strong earnings report led to a rally in NVDA stock over $1,000 per share. Big Tech companies tend to follow peers in corporate actions, like dividends. Meta Platforms and Alibaba initiated dividends recently, with speculation on Amazon following suit. Stock splits occur when prices rise, making shares more affordable for retail investors.

Among the Magnificent 7, Tesla, Amazon, and Alphabet are unlikely to split due to recent splits or share prices. Microsoft, with 9 previous splits and a $3.2 trillion market cap, is a top contender for a stock split. Meta Platforms, at a $1 trillion market cap and high stock price, could also be a candidate.

Microsoft could benefit from a stock split to attract retail investors, being the only company globally with a market cap exceeding $3 trillion. Meta Platforms, a relative newcomer, has yet to split shares but may consider it as the stock nears $500 amid high valuation. Both companies follow trends set by peers in the industry.



Read more at NASDAQ: Which ‘Magnificent 7’ Stock Should Split Its Shares Next After Nvidia?