Menu
Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Artificial Intelligence (AI) Stock-Split Stocks Are All the Rage on Wall Street -- But Only 1 Is a Clear-Cut Buy Right Now


Wall Street seemingly has two loves at the moment: anything that has to do with artificial intelligence (AI) and companies conducting stock splits. What you might not realize is that these two trends are intersecting for a trio of companies.

A stock split is a tool publicly traded companies have at their disposal that allows them to alter their share price and outstanding share count. Keep in mind that these changes are purely superficial, with stock splits not affecting a company's market cap or its underlying operating performance.

Though stock splits come in two varieties -- forward (reducing the nominal share price) and reverse (increasing the nominal share price) -- most investors tend to flock to companies completing forward-stock splits. Since high-flying businesses are out-innovating and out-executing their competition, forward splits are almost always being conducted from a position of operating strength. This can rarely be said for publicly traded companies enacting reverse-stock splits.

Continue reading


Source Fool.com

Like: 0
Share

Comments