By Keithen Drury
Publication Date: 2025-11-22 19:30:00
The tech giant hasn’t split its stock in more than two decades.
Stock splits are exciting events that occur from time to time. While they’re not nearly as common as they used to be due to the rise of the ability of retail investors to buy fractional shares, companies still perform these financial maneuvers, and for good reasons. First, stock splits open up investment opportunities to those who don’t have access to fractional shares. Second, when a company has a lower share price, its stock can be used as a form of compensation for employees more easily, especially with options.
When companies announce splits, their shares often do experience a bit of a boost, as these moves generate extra enthusiasm among investors. They’re also a bullish signal that management expects the conditions that boosted the share price in the first place will persist. But fundamentally, a split does nothing to increase the real value of the underlying company.
It has been a long time since Microsoft