Companies Due For A Stock Split In 2020
Stock splits have been around for years, and many companies use the process as a driving factor for new investors. Welcome to my blog, the place for all things money management, stock investment, and financial freedom. If you want to learn more about stock investment, then check out my post “Making Passive Money With Only A $1000 Investment“.
In today’s post, I will be screening through some of the stocks I believe are due or would most likely have a stock split shortly. In my post “5 to 1 Stock Split And What That Means For Investors In 2020” I explained the concept of stock splits and how they affect the investor and why they are a good choice for companies. So check that out.
Please, leave a comment on all things stock investment and stock split and I will give my honest reply. Be sure to support the post by liking and sharing the blog; it means a lot to me. All values noted here are accurate for the 24th of August 2020.
Jim Cramer’s view
If you are a fan of Mad money, then you must have heard Jim’s latest opinion on stock splits and companies that would be in the line for a split. He said that there are a few companies due for a stock split. As I wrote in my Tesla’s split article, the company is and will keep receiving a lot of hype in their stock because of their recent stock split. And Jim says that if the market is to keep thriving and moving, then more companies need to follow in the footsteps, Tesla.
Top ten companies due to stock splits
Chipotle:
This possibly one of the fastest-growing food brands in the country and this is largely due to their healthy food option. A lot of 20’s investors tend to lean more to investing in this company. But with the stock price of over $1,200, this isn’t looking so good for the young generation investors. They have never done a split since they entered into a public company, so this is going to be a great way for them to attract more investors. In my opinion, they could do something like a ten for one to get the memento going.
Amazon:
In the past, they have done a few stock splits but recently nothing has happened. One can say with their present stock value at over $3,300 is high and needs a split to increase its marketability. In my opinion, a ten to one stock split would be best for the company. I believe that $300 is a fair amount for the company’s stock value.
Netflix:
For now, their stock price sits at just under $500. This for many new investors is on the high side, and they are waiting for a split. The company has done a few splits in the past, and I expect to see another in the 4 or 5 to one split.
ADOBE:
Sitting well over $400 in stock value this company is due for a split. They have done a number of them in the past, and I think they should do another soon. A four or five to one split seems ideal at this point.
Google:
The stock value right now is just around $1,500, which isn’t so bad for a premium company like this. However, there is still room for a split, and in my opinion, maybe a 3 or 5 for one split would do. And maybe if they want to be investor-friendly, they can go as far as a ten for one, but I doubt they would do this.
NVIDIA:
This stock’s value sits just at $500, and I believe this is on the high side for the company. The company has seen several stock splits, and I think it is time for another. I am looking forward to seeing a 4 or 5 to one split.
Microsoft:
This is next on the list, and I don’t think this company will have a split soon since again it is a premium company. But if they have to and a lot of young investors are hoping for that, but if they have to, they will take their $200 plus stock value and do a 2 to 1 split.
Costco:
This is one of the retail stocks I think is due for a split. More retail stocks don’t go so high in stock value, and I think this company should stick to that rule. Now they are over $300, and I think they need to see a 6 to 1 stock for more investor interest.
Home Depot:
This is a popular stock splitting company, and I would like to see another stock split from them. They are not very high in value now at around $280, but I still want to see a lower stock. So a 4 or 5 to one seems fitting.
Facebook:
This Company tops my list. Right now they are well over $250. This isn’t a high value for the stock, seeing that it is a premium stock, yet I believe investors want a spit. I guess that if a split will happen, then it would be around a 2 or 3 to one split.
Conclusion
Even if these companies should go on to split their stock, it doesn’t matter to an existing investor. It might be good for new investors who can now afford to buy the company’s stock. As Jim said, stock splits are excellent for new investors but horrible for professional investors. This is because when a split happens, those who love to own big companies but don’t want to spend the money to get them will happily jump at the new low price.
Now he goes on to say that this will, in turn, affect the companies with values that are low. Whatever the case, maybe you don’t have to be worried as a retail investor.
Thank you for staying through this post, let me know your opinion and list some of the companies you think are due for a split. Leave the comment down in the comment section. Also, like and share this post, the support means a lot to me.
Recommended for further reading:
- Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
- Shares Made Simple: A beginner’s guide to the stock market
- Smarter Investing: Simpler Decisions for Better Results
- The Warren Buffett Way
- Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage