Are Stock Splits Making a Comeback in 2024?
Stock splits, a strategy that was once popular but fell out of favor, seem to be making a comeback in 2024. It all started with Walmart announcing a 3-for-1 stock split in January, followed by Williams Sonoma with a 2-for-1 split, and Broadcom with a 10-for-1 split. This trend of stock splits seems to be gaining momentum this year.
At Extreme Investor Network, we keep a close eye on market trends and stock movements. In 2024, some notable stock splits include Walmart, CooperCompanies, Texas Pacific Land, Nvidia, and more. This resurgence of stock splits is raising questions among investors about the reasons behind this comeback.
Why are stock splits becoming more common again? In the late 1990s, stock splits were prevalent during the tech and internet bubble. However, after the financial crisis in 2008-2009, stock splits became rare. The increase in stock splits in 2024 can be attributed to factors such as attracting retail investors and making stock ownership more accessible.
But does splitting a stock affect its price? In theory, the value of the company remains the same after a stock split. However, academic studies have shown that stock splits can lead to changes in trading patterns, increased trading volumes, improved liquidity, and a larger shareholder base.
Which companies are likely candidates for stock splits? Companies with high stock prices, especially those in the “over $1,000” club, may consider splitting their stocks to attract more investors. Companies like Chipotle, Broadcom, and Lam Research have already announced stock splits, while others like Booking Holdings and Autozone are yet to make a move.
Overall, the resurgence of stock splits in 2024 is a trend worth watching for investors. If you want to stay informed about the latest market movements and investment strategies, make sure to check out Extreme Investor Network for expert insights and analysis. Stay ahead of the curve and maximize your investment potential with our unique content and valuable resources.