Stock Split Bandwagon
Stock split is a move where a company takes to increase the no. of outstanding shares and decrease the price of each share, and there are various reasons for them to do so.
I have done a short video on what exactly is a stock split, and what does it mean to retail investors like us. Also, I touched on some of the past stock split performances and my personal thoughts on companies splitting their stocks/shares.
But just wanted to highlight that stock split euphoria and FOMO tend to be short-lived and have absolutely no effect on the operating performance of an underlying business.
When it comes to long term investing and returns, it is still more important to pay attention to the company’s performance and fundamentals. That said, stock splits are usually announced by companies with strong fundamentals that are likely to continue into the near or even long future
For me, before or after stock split, Nvidia, Google, Apple and Tesla are still good companies and solid stocks to buy for the long term.
I have done a short video on what exactly is a stock split, and what does it mean to retail investors like us. Also, I touched on some of the past stock split performances and my personal thoughts on companies splitting their stocks/shares.
But just wanted to highlight that stock split euphoria and FOMO tend to be short-lived and have absolutely no effect on the operating performance of an underlying business.
When it comes to long term investing and returns, it is still more important to pay attention to the company’s performance and fundamentals. That said, stock splits are usually announced by companies with strong fundamentals that are likely to continue into the near or even long future
For me, before or after stock split, Nvidia, Google, Apple and Tesla are still good companies and solid stocks to buy for the long term.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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