My 2 Best Stock Split Growth Stocks to Buy Now and Hold Forever
Several popular businesses have either split their stock or announced stock splits in the past year. Earlier this month, Amazon (NASDAQ: AMZN) said its stock would undergo a 20-for-1 split in June, pending shareholder approval. And earlier this week, Tesla (NASDAQ: TSLA) made a similar decision.
In both cases, shareholders should avoid getting too excited. Yes, you could argue that a stock split often triggers an uptick in share price, which could theoretically be monetized if the company uses its stock to raise money or fund an acquisition. But broadly speaking, splitting a stock is like cutting a pizza into more slices: It doesn't matter how many times you cut the pie, the total amount of pizza doesn't change. Similarly, a stock split has no direct impact on corporate revenue, cash flows, or value.
That being said, Amazon and Tesla dominate their respective industries, and both stocks look like smart long-term investments. Here's why.
Source Fool.com
