Stock splits are exciting for two big reasons. First, they break a company's shares into smaller, more accessible pieces. Secondly, they are a sign that its equity price might be rapidly growing -- a likely indicator of positive revenue and earnings momentum.

With shares up by 105% and 211% this year alone, Palo Alto Networks (NASDAQ: PANW) and Nvidia (NASDAQ: NVDA) have performed well in the wake of their recent stock splits. Let's discuss some reasons why their bull runs might just be getting started in 2024 and beyond.

Palo Alto's stock split occurred in September 2022 and gave investors three lower-priced shares for every one they previously owned. In the following quarters, the cybersecurity leader's equity has performed well -- rising by a whopping 105% in 2023 alone. And this trend has a lot to do with its burgeoning profitability and AI-powered growth drivers.

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Source Fool.com