The wave of stock splits in 2021 and 2022 that included hot stocks like Amazon, , Apple, Tesla, and Shopify has come and gone, but that doesn't mean investors can't speculate about the next one.

Stock splits don't change the fundamentals of a stock. They simply divide the pie into more pieces. In a 2-for-1 split, for example, an individual shareholder would own double the shares they had before, but the shares would be worth half as much. The total value remains the same.

However, there is some evidence that stock splits can help build momentum in a stock. stock splits do make individual shares cheaper, making them more attractive to retail investors, and they also act as milestones for the stock. Management tends to issue stock splits when they believe the stock has reached a certain big round number that it can sustain. Psychologically, the split acts like a reset for the stock to run higher again.

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Source Fool.com