In recent months, a number of high-profile companies have implemented or considered stock splits as a strategic move to increase accessibility and demand for their shares. Nvidia, a leading technology company, successfully executed a 10-for-1 stock split on June 10, resulting in a slight increase in share prices. The decision to split the stock was driven by the rapid price increases that pushed the value of a single share above $1,000, potentially deterring potential investors. By splitting the stock, Nvidia aimed to make ownership more accessible and stimulate demand.
Following Nvidia’s footsteps, Broadcom, a semiconductor company, announced a similar 10-for-1 stock split scheduled for July 12. The expectation is that this move will have positive psychological effects on investors, making the shares more affordable and attractive. Other notable companies that have recently undergone stock splits include Alphabet, Amazon, and Tesla.
Looking ahead, there are several companies that investors speculate might be the next candidates for stock splits. ASML, a global supplier of high-demand machines used in semiconductor production, is considered a logical choice due to its valuable position in the market. The company’s shares have experienced significant growth, reaching above $1,000, but this hasn’t negatively impacted demand. However, a stock split could further enhance accessibility and potentially benefit ASML’s capital structure.
MercadoLibre, a rising star in the e-commerce and fintech sectors, has seen its stock prices soar to nearly $1,700. While the company has maintained high prices for several years, a stock split could serve as a demand catalyst and make the shares more affordable for a wider range of investors. Despite the potential benefits of a split, MercadoLibre’s strong fundamental growth continues to impress.
Microstrategy, known for its enterprise analytics business and significant Bitcoin holdings, has seen its stock prices surpass $1,000. The psychological barrier of this price level could make the company a potential target for a stock split, following the footsteps of other high-profile companies. Deckers Outdoor, the owner of popular brands Hoka and Ugg, has experienced remarkable growth, with share prices approaching $1,000. While the strength of its brands may be sufficient to drive demand, a stock split could send a strong message to the market.
Eli Lilly, a pharmaceutical company, has gained significant market capitalization and is expected to reach $1 trillion in value in the near future. Implementing a stock split, similar to Nvidia and Broadcom, could potentially expedite this milestone and demonstrate confidence in the company’s prospects. Regeneron Pharmaceuticals, another high-priced stock in the pharmaceutical sector, is also considered a potential candidate for a stock split. The company’s strong fundamentals, including impressive earnings per share, suggest that a split could be a logical move.
Mettler-Toledo International, a healthcare firm specializing in diagnostics and research instruments, consistently maintains share prices above $1,000. While healthcare stocks often trade at high prices, a stock split could help drive demand and differentiate the company in the market. The strong trailing 12-month per-share earnings of Mettler-Toledo International further support the potential benefits of a split.