Reported 4 months ago
The article discusses two notable stock-split companies, Chipotle Mexican Grill and MicroStrategy, emphasizing their high valuations despite underlying risks. Chipotle's recent 50-for-1 split follows a massive price increase since its IPO, yet its inflated price-to-earnings ratio raises concerns about future growth sustainability. Similarly, MicroStrategy's valuation is heavily tied to its Bitcoin holdings, leading to significant investor premiums that overlook the risk tied to its financing strategy and declining software sales. Investors are cautioned to be wary of these overpriced stocks.
Source: YAHOO