Nvidia, Amazon, Google: Next In Line For Stock Split?
Stock splits are back in favor this year, with Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) splitting their shares late last month. Although splits don’t change the fundamentals of a company, they often cause a run-up in the stock price post-announcement as investors see them as a signal that growth could remain strong going forward. In our indicative theme of Stocks Poised For A Split we’ve identified a group of large-cap companies in the S&P 500 that have seen strong growth and price appreciation that could be prime candidates for a future stock split. The theme has returned about 37% year-to-date, versus 5% for the S&P 500. It remains up 113% since 12/31/2017 vs. 27% for the S&P. Below is a bit more about the companies in our theme.
Nvidia NVDA : The maker of graphic processing units (GPUs) has seen its stock soar over 110% this year, driven by growing demand from data centers and its recent deal to buy chip designer ARM. The stock trades at a little over $500 and saw its last split about two decades ago.
Amazon AMZN also saw its last split about two decades ago and currently trades at around $3,080. The stock is up by 67% year-to-date, as the Covid-19 pandemic caused demand for its e-commerce and cloud services business to surge.
Intuitive Surgical a company that develops products for robotic surgeries carried out its last stock split in 2017. The stock trades at about $690 currently and is up by about 17% year-to-date.
Chipotle Mexican Grill CMG stock trades at over $1,260 presently and the company hasn’t done any splits to date. The stock is up by about 51% year-to-date.
Alphabet Google’s GOOGL parent company carried out its first and only stock split in 2014 and the stock trades at over $1,500 presently. The stock is up by around 13% year-to-date.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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