2 Reasons to Buy Nvidia After the Stock Split (and 1 Reason to Sell)
Stock splits can be exciting for retail investors, particularly those whose brokerages might not offer them the option of purchasing fractional shares. I have lost count of the number of non-finance people suddenly asking me about Nvidia (NASDAQ: NVDA) stock now that it's trading for "just" $130 a share.
But while splits can make a stock appear cheaper, they have no impact on a company's valuations -- how the market prices it relative to sales, earnings, etc. -- nor on its market cap, which is the value of all its outstanding shares combined. In the case of Nvidia, that market cap is $3.2 trillion, making it the third-largest company in the world today, just a hair behind the one that makes iPhones.
Is Nvidia stock still a buy at its current lofty market cap? Here are two reasons to continue hitting the buy button and one reason to consider jumping ship.
Source Fool.com
