3 Tech Companies That Should Initiate a Stock Split
Amid the recent stock splits in Amazon (NASDAQ: AMZN) and Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), investors seem anxious to hear about the next company that wants to employ this strategy.
Stock splits do not change the financials of a company on the surface. The process merely divides shares, meaning a 2-for-1 stock split would double the number of shares while cutting the share price in half. However, a lower nominal price makes whole shares more affordable to small investors, providing a possible psychological boost. Given high nominal prices, we feel Palo Alto Networks (NASDAQ: PANW), MercadoLibre (NASDAQ: MELI), and Broadcom (NASDAQ: AVGO) could benefit from such a move.
Jake Lerch (Palo Alto Networks): With shares trading around $480 each, Palo Alto Networks is my choice for a technology stock that should initiate a stock split.
Source Fool.com
