Reported 6 months ago
BofA suggests that Nvidia's recent 10-for-1 stock split could be the beginning of a trend in the tech sector, as several high-priced companies like Microsoft and Meta Platforms approach levels that may prompt similar splits. The bank identified 36 S&P 500 firms with share prices over $500 as potential candidates for splits, including Broadcom, ServiceNow, and Netflix. Stock splits are seen as a way to make shares more accessible to a broader investor base, and historically, companies that split their stocks have seen strong returns in the following year. Nvidia's split follows a trend in the tech industry, with other megacap stocks like Apple and Tesla also undergoing splits in recent years.
Source: YAHOO