Stock Split Watch: Are These 2 Unstoppable Stocks Next?

There is no science to predicting which companies will resort to a stock split and when, but observers can use some clues to make educated guesses. Stock splits help make a company's shares look more affordable. Of course, that's an illusion, since there are also more shares.Still, the point is that corporations trading at what seem like prohibitively expensive prices are often leading candidates for stock splits. That's the case for MercadoLibre (NASDAQ: MELI) and Booking Holdings (NASDAQ: BKNG). Are stock splits in the works for these corporations?Stock splits don't change the fundamental value of a company. If I cut a pizza into six slices and sell you one for $10, or cut it into 12 slices and you buy two for $10, you've gotten the same deal each time. That's more or less what stock splits are, but there are still good reasons for corporations to resort to this move.Continue reading

Mar 29, 2025 - 08:55
 0
Stock Split Watch: Are These 2 Unstoppable Stocks Next?

There is no science to predicting which companies will resort to a stock split and when, but observers can use some clues to make educated guesses. Stock splits help make a company's shares look more affordable. Of course, that's an illusion, since there are also more shares.

Still, the point is that corporations trading at what seem like prohibitively expensive prices are often leading candidates for stock splits. That's the case for MercadoLibre (NASDAQ: MELI) and Booking Holdings (NASDAQ: BKNG). Are stock splits in the works for these corporations?

Stock splits don't change the fundamental value of a company. If I cut a pizza into six slices and sell you one for $10, or cut it into 12 slices and you buy two for $10, you've gotten the same deal each time. That's more or less what stock splits are, but there are still good reasons for corporations to resort to this move.

Continue reading