Five of the “Magnificent Seven” stocks have recently split their shares, including NVIDIA’s milestone 10-for-1 split, the first in nearly three years for the AI chip leader. The trend of splits among the high-flying tech players began at the start of the pandemic, with Apple, Amazon, Alphabet, and Tesla also splitting shares in recent years.
Microsoft and Meta Platforms are the only two stocks from the Magnificent Seven that have not split their shares recently. Microsoft, the most valuable company in the world, has seen significant growth under CEO Satya Nadella thanks to investments in cloud computing and AI. With a stock price above $400 per share, a split seems likely to keep the stock accessible to investors and in line with the Dow Jones Industrial Average.
In contrast, Meta Platforms, the social media leader, has never split its shares since going public in 2012. Despite a significant rise in stock price, executives have not addressed the possibility of a split until now. The recent implementation of a dividend payment suggests the company may be open to such changes.
Of the two, Meta Platforms appears to be the next likely candidate for a share split due to its higher stock price and valuation relative to Microsoft. A split could make the stock more attractive to retail investors and potentially help gain admission to the Dow.
While there is no guarantee of a split, it would make sense for Meta Platforms to consider it as the share price continues to rise. Ultimately, the decisions of when or if Microsoft and Meta Platforms will split their shares will depend on various factors, including market conditions and company strategies.
It remains to be seen which of the two companies will be next to follow the trend of share splits among the Magnificent Seven stocks.
Article Source
https://www.fool.com/investing/2024/06/07/magnificent-seven-stock-split-who-will-be-next-aft/