2 Stock Split Growth Stocks to Buy Now
Stock splits have no impact on revenue or earnings, nor do they affect the valuation or market capitalization of a business. But splits can still create some perceived value for investors by making a company's share price appear more affordable. Not everyone has the money to buy a full share of higher-priced stocks like Tesla (NASDAQ: TSLA) or Shopify (NYSE: SHOP) right now.
But both companies plan to split their stocks in the near term (Shopify plans it on June 7 and Tesla has only said it will be later this year), and it could lead to some short-term price appreciation.
Of course, short-term tailwinds often make for a poor investment thesis, but Tesla and Shopify are both high-quality businesses with plenty of long-term potential. And with so many growth stocks trading deep in bear market territory -- Tesla is down 45% and Shopify is down 78% from 52-week highs -- a buying opportunity has been created.
Source Fool.com
