Stock split myth busted?
$Super Micro Computer (SMCI.US)$ is faring worse than any other stock split news. while it is hard to replicate $NVIDIA (NVDA.US)$ , even $Broadcom (AVGO.US)$ and $Chipotle Mexican Grill (CMG.US)$ were better than this (even while being disappointing stock split price action before and after).
Was it the right time to announce a split? was the expectation to rally price at the face of disappointing EPS? Baffled by the strategy and the subsequent outcome right after stock split announcement.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
An analyst building the trader mindset with deep understanding of day trading and value investing.
My comments are NFA
85Followers
35Following
318Visitors
Follow
105127747 : good question. I also wonder why a stock split.
MomentumPython1337 : doesn't matter, stock split doesn't change the business or fundamentals
MomentumPython1337 : it's a tool for traders and speculators. if you are here for the long term it doesn't affect you
R30R OP MomentumPython1337 : Agreed. However, Knowing the market sentiment right now, it could have been timed better to give the stock better leverage on the share price.
Perhaps you are right. For I can contradict myself by citing others splits that were announced when the market was bullish and didn’t knock it out of the park.
pootpoot : they are stock splitting now before the actual splitting happens by causing dip
73372627 : The EPS was not disapointed. The stock split was a smart move for the company. Now they can at this price of stock to give incentive to the emplyees in order to be stable in the staff movement and in same time to focus in development. Also now the stock can attract more investors. 50:1 meen that the company know that many big investors will seel-off to make place to smallers investors.
Just thinking: at 3000 a share who or how manny will bid on? Answer: No manny. So now even small speculators or shorters brokers will profit for manny factors of timinning market, they pusuit theyrs development and expand.
Me I think they move correct and in good direction. Analysing a stock and a company is not stop on some seasonal results.
This it is my own oppinion, and I am a little bit sour see that manny look just short term. Any stock (indifferent how you play) must be analize for short, medium and long term.
Hope help and be wise.