Are Costco and Netflix About to Become Wall Street's Next Stock-Split Stocks?

Though artificial intelligence (AI) has been the hottest thing since sliced bread on Wall Street since the fourth quarter of 2022, it's not the only trend helping to push the stock market's major indexes to record highs. Coming in a very close second to the AI revolution is the euphoria surrounding stock splits.A stock split is an event that allows a publicly traded company to cosmetically alter its share price and outstanding share count by the same factor. These changes are surface scratching in the sense that they don't alter a company's market cap or affect its underlying operating performance in any way.While stock splits can increase or decrease a company's share price, there's a milewide gap as to how investors commonly view these adjustments. Public companies aiming to increasing their share price via a reverse split are typically shunned by investors. Reverse splits are often conducted by struggling businesses that are trying to avoid being delisted from a major stock exchange.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool