Stock Splits: Trends and Opportunities
Stock splits, while less common nowadays, still hold potential value, particularly as fractional shares have lessened their impact. Although fractional shares aren’t widely available to all investors—especially those outside the U.S.—companies still use stock splits to manage employee compensation packages. In any case, stock splits can create notable excitement among investors and, sometimes, lead to significant price increases for stocks. With several splits anticipated for next year, it might be a good time to keep an eye on stocks poised for such changes.
Take Microsoft (NASDAQ: MSFT), for example. It might not seem like a prime candidate for a split at first glance, but with its stock price hovering around $500, it could be compelled to adjust. Microsoft is currently the second most expensive stock in the Dow Jones Industrial Average, which is weighted by stock price rather than company size. So yeah, there’s a chance the company will consider a split to maintain its position within that index.
Goldman Sachs (NYSE: GS) finds itself in a similar spot as another expansive entity in the Dow at over $700 per share. Given the trend, a stock split could also be on the horizon for them next year.
And what about Meta Platforms (NASDAQ: Meta)? The company is making strides from traditional manufacturing into the AI sphere, reflecting a wider shift in the economy. Currently priced at about $725 per share, it’s not far-fetched to think it might consider a split soon.
Then there’s Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B). It’s tricky with the Class A shares skyrocketing past $700,000. There’s probably not much to expect there for a split. But, considering recent management changes, it’s tough to predict how things will evolve. The Class B shares are more reasonably priced at around $477 and could be a candidate for a split, especially since making stock investment accessible is likely a priority for the company.
Costco Wholesale (NASDAQ: COST) has seen stock values soar past $1,000, but it’s currently just below that mark. Don’t be shocked if a stock split is announced by 2026 as it could become an appealing opportunity for investors.
On a similar note, Netflix (NASDAQ: NFLX) is trading around $1,250, which feels pricey for tech stocks. Given the high stock values, the company might look at splitting its shares in 2026 to make its stock more appealing for employee compensation purposes.
ASML (NASDAQ: ASML) is also in the mix, priced near $800 right now. They hit a 52-week high of over $1,100, showing robust growth expected in the semiconductor industry. With market conditions shifting, a stock split might be considered soon.
ServiceNow (NYSE: NOW) is trading at a thousand dollars, leveraging AI to enhance its business models. With impressive growth recently, it’s on the radar as a potential candidate for a stock split.
Fair Isaac Corporation (NYSE: FICO) is another noteworthy mention; the company is known for its role in credit scoring. Its stock, over $1,600 a share, has seen better highs but might consider a split given the high price point.
Finally, there’s Mercadolibre (NASDAQ: MERI), the Latin American e-commerce giant. As it expands, its stock price could reach $2,400, raising the possibility of a split by 2026.
Even if not all these companies end up splitting their stocks, they still represent strong investment opportunities. Investors should carefully consider their options as market dynamics evolve.
