As we all know, artificial intelligence (AI) has been driving significant growth in the stock market. Companies like Nvidia, Broadcom, and Super Micro Computer have seen drastic increases in their stock prices, leading to stock splits. This trend has left investors wondering which companies will be next to follow suit.
At Extreme Investor Network, we believe that Microsoft and ServiceNow could be the next AI companies to announce stock splits in 2024. Both companies have seen substantial growth in their stock prices since January 2023, making their shares more accessible to the average investor if they were to split their stocks.
Let’s delve deeper into these two companies to see why they might be good candidates for stock splits:
1. Microsoft:
Microsoft is a powerhouse in the software industry, with a strong presence in business intelligence, communication, and enterprise resource planning software. The company has been making strategic moves in the AI space, including the introduction of generative AI assistants like Copilot for Microsoft 365. This innovative technology has been well-received by users and is expected to drive market share growth for Microsoft in the coming years.
Additionally, Microsoft Azure, the company’s cloud computing platform, has been gaining market share in cloud infrastructure services. With a focus on cybersecurity and database solutions, Azure has positioned itself as a leader in the AI space. Despite some financial challenges in the fourth quarter of fiscal 2024, Microsoft remains a strong player in the technology sector.
While Wall Street expects Microsoft to continue growing earnings, the current valuation of the stock may be considered expensive. Investors should carefully evaluate the stock before making any buying decisions.
2. ServiceNow:
ServiceNow is a key player in workflow management software, with a focus on IT solutions. The company has been praised for its AI-driven offerings like virtual agents and predictive analytics, which have improved worker productivity. The introduction of generative AI tools like Now Assist has further solidified ServiceNow’s position as an AI leader in the enterprise space.
Financially, ServiceNow has been performing well, with revenue and non-GAAP net income showing significant growth. The company’s generative AI tools have been gaining traction with clients, paving the way for future revenue growth. Despite the strong performance, the current valuation of the stock may be considered expensive by some investors.
At Extreme Investor Network, we encourage investors to carefully consider their options when it comes to investing in Microsoft and ServiceNow. While both companies show promise for future growth, it’s essential to analyze their financials and market positioning before making any investment decisions.
In conclusion, the potential for stock splits in Microsoft and ServiceNow presents an exciting opportunity for investors. By staying informed and conducting thorough research, investors can make informed decisions that align with their financial goals. Stay tuned to Extreme Investor Network for more insights and updates on the latest trends in the finance and investment world.