On its recent earnings call, tech giant (NASDAQ: AVGO) disclosed it would be splitting its stock 10-for-1 on July 12. Given that Broadcom's stock surged over 12% to $1,700 per share the day after its report, one could perhaps say a stock split was overdue.

Of note, Broadcom's stock split won't change the value of the company itself, which currently sits around $780 billion. While stock splits can perhaps make it easier for retail investors and employees to buy shares (such as in employee stock purchase plans), splits don't change the fundamentals of a company, such as its earnings, revenue growth, or intrinsic value.

As such, a stock split is never a reason to buy a stock. However, Broadcom also offered compelling reasons for its post-earnings pop and continued ownership, especially in its two most important product segments.

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Source Fool.com