Broadcom’s stock split is approaching on July 12, and some investors may be wondering if they should act quickly. The semiconductor and software company’s stock price has nearly quadrupled since October 2022, with shares up over 50% so far this year. The company announced plans for a 10-for-1 stock split in its June quarterly report, aiming to make ownership more accessible.
The main reason to consider buying Broadcom stock before the split is the potential for increased trading activity and buying pressure, which could push the stock price higher. While there are other events around July 10-11 that could impact stock prices, the stock split is expected to be a significant catalyst for Broadcom.
Research from Bank of America shows that stocks tend to rise by an average of about 25% in the 12 months after a split is announced, more than double the S&P 500 Index average gain. Broadcom shares have already increased by nearly 17% since the split announcement on June 12, indicating potential for further growth over the long term.
Instead of focusing on short-term gains, investors should consider Broadcom’s future prospects in AI technology, VMware acquisition, and potential for increased smartphone sales. Identifying reasons to hold the stock for the long term can improve chances of profitability regardless of timing the stock split on July 12.
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https://www.fool.com/investing/2024/07/10/heres-the-top-reason-to-buy-broadcom-stock-before/
