Is NVIDIA Stock a Buy Ahead of Its Stock Split?
Back on May 26, when the company announced its first-quarter earnings, NVIDIA (NASDAQ: NVDA) also detailed plans to initiate a 4-for-1 split on July 19. The stock has since climbed more than 21% in the wake of the announcement.
Many investors are now asking the question: Is the stock a buy ahead of its highly anticipated stock split next month? Since more investors will be able to afford NVIDIA stock, it stands to reason that there might be an increase in demand. Additionally, stockholders just approved an increase in the total number of authorized shares from 2 billion to 4 million, which will also improve liquidity, since the stock can be bought and sold at a more reasonable price.
While NVIDIA shares certainly look attractive today, the upcoming stock split isn't the reason investors should be loading up on shares.
Source Fool.com
