Better Stock-Split Stock to Buy: Tesla or Shopify?
The U.S. equity market has been facing tough times in 2022. With inflation reaching a 40-year high in June 2022, worries of rising interest rates slowing down the economy and escalating geopolitical tensions across the world, the benchmark S&P 500 has reported its worst first-half-year performance in the past 52 years.
Despite this, investors have remained keen on stock splits wherein a publicly traded company increases its outstanding share count without changing overall market capitalization. Since this also causes a proportional reduction in share price, it makes the stock more affordable for investors. It also indicates to the market that the price surged too high. Therefore, it's seen as a positive move.
Not surprisingly, Tesla (NASDAQ: TSLA) and Shopify (NYSE: SHOP) are among the top contenders in the list of stock-split stocks that have garnered maximum investor interest. However, there is one that is fundamentally stronger than the other and can prove to be a better buy in the current uncertain macroeconomic environment.
Source Fool.com
