In a surprising turn of events, stock splits have taken the spotlight on Wall Street, overshadowing the hype surrounding artificial intelligence (AI) in 2024. Stock splits, which allow companies to adjust their share price and outstanding share count, have become a popular cosmetic alteration among publicly traded companies. Among the two types of splits, forward-stock splits have gained favor among investors, as they make shares more affordable for retail investors. Over the past six months, 13 high-profile companies have announced or completed stock splits, with the majority being forward splits.
However, billionaire money managers have shown mixed sentiments towards these stock-split stocks. In the latest round of Form 13F filings, two of these stocks were sold off by prominent investors, while another saw significant buying activity. Nvidia, a hardware leader in the AI revolution, faced notable selling activity by asset managers, including Ken Griffin, David Tepper, Stanley Druckenmiller, and others. Concerns over competitive pressures and historical patterns of next-big-thing innovations losing market share may have contributed to this selling trend.
Chipotle Mexican Grill, a fast-casual restaurant chain, also experienced a significant sell-off by billionaire investors such as Ken Griffin, Bill Ackman, and Ray Dalio. Despite the company’s success in offering responsibly sourced and high-quality food, concerns over its valuation and the departure of CEO Brian Niccol have raised doubts about its future growth potential.
On the other hand, Broadcom, an AI networking solutions specialist, witnessed strong buying activity from several billionaire investors, including Ole Andreas Halvorsen, Israel Englander, Ken Griffin, and others. Broadcom’s diverse sales channels and its position as a leading provider of wireless chips for next-generation smartphones have contributed to its appeal among investors.