Stock splits on the rise, beneficial for companies and retail investors, potential splits for Nvidia, Chipotle.
From Nasdaq
August 8, 2024 3:29:04 pm:
Stock splits are making a comeback, with Walmart and Williams-Sonoma recently announcing splits. This trend is seen as beneficial for companies and retail investors, making stock ownership more accessible. Despite stock splits not directly impacting future performance, they can broaden investor bases. Nvidia and Chipotle are also potential candidates for stock splits. MicroStrategy reported strong Q2 2024 results, holding over 226,500 Bitcoin valued at 70% above the cost basis. The company introduced a new KPI aiming for 4% to 8% annual returns. MicroStrategy recently announced a 10-for-1 stock split, scheduled for August 7th. Super Micro Computer (SMCI) saw impressive growth in 2023 and 2024, with its stock surging 246.2% and 188.2% respectively. Despite stock splits not altering company value, they often signal management’s confidence. Supermicro’s recent gains could prompt a stock split to sustain valuation. Supermicro reported an impressive Q3 with revenue reaching $3.85 billion and net income improving fourfold. Wall Street is bullish on SMCI, potentially leading to its first-ever stock split. ServiceNow saw robust growth in Q2, with a 25% increase in subscription revenue. Despite stock splits not affecting company value, lower prices can attract new investors. ServiceNow’s significant stock surge could prompt a split to align with tech peers and capitalize on further growth. ServiceNow reported strong revenue growth in 2023, with a recent quarter surpassing estimates. The company’s Now Assist, powered by Microsoft Co-Pilot, enhances workflows with AI tools, prompting a “strong buy” rating. Chris MacDonald, with an MBA in Finance, brings his conservative, long-term investing perspective to identify undervalued growth opportunities. Stay updated on potential stock split opportunities, such as MicroStrategy and Super Micro Computer.
Read more at Nasdaq: 3 Stock Split Opportunities Investors Should Pay Close Attention To