Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top

Will Nvidia bring a new era of stock splits to US stocks? Who will be the next key to wealth?

avatar
moomooニュース米国株 wrote a column · May 27 07:51
As Nvidia carries out stock splits, what about Bank of America (BofA)?There is a potential for sparking a stock split boom in the US stock market....considering. BofA refers to stock splits as "Demonstration of strength"Companies that have carried out stock splits tend to achieve strong returns in the following year," pointed out. According to the data, Companies announcing stock splits typically demonstrate performance exceeding the market.Who will be the next key to wealth?
$NVIDIA (NVDA.US)$announced a stock split of 1 share to 10 shares to be implemented on June 7 along with the earnings report. The company states that this stock split will make it easier for employees and investors to purchase shares. Nvidia's last stock split was in 2021, when they split 1 share into 4. The stock price at the time of the announcement was approximately $600, reaching a peak of $835 before the effective date.has reached a stock split, currently nvidia shares are bullish after stock split rising by over 450%.Is
Will Nvidia bring a new era of stock splits to US stocks? Who will be the next key to wealth?
What are the candidates for the next stock split?
BofA, in its report, focuses on 36 S&P 500 constituents that have stock prices exceeding $500. These are stocks with high prices, potential candidates for stock splits. Particularly $Broadcom (AVGO.US)$ $Netflix (NFLX.US)$ $Advanced Micro Devices (AMD.US)$ $ServiceNow (NOW.US)$Such as high-priced tech stocks like NvidiaThe center of the candidates for the next stock splitand others, online travel giant whose stock price is approaching around $3800 $Booking Holdings (BKNG.US)$including pharmaceutical companies with stock prices above $3000 $Chipotle Mexican Grill (CMG.US)$and $AutoZone (AZO.US)$ $Eli Lilly and Co (LLY.US)$ $Regeneron Pharmaceuticals (REGN.US)$etc.
In addition, Microsoft and Meta of the US stock 'M7' are also approaching the $500 club. The next stock split could be highly likely for these strong candidates.
Will Nvidia bring a new era of stock splits to US stocks? Who will be the next key to wealth?
What is the impact of stock splits on stock prices? "Average return significantly outperforms the S&P500!" as stated by Bank of America Corp.
Stock splits refer to a company dividing existing high-priced shares into multiple lower-priced shares, thereby increasing the number of shares issued. After a stock split, shareholder equity remains the same, the market capitalization of the company also remains unchanged, but the number of shares held changes. Stock splits do not change the market capitalization of a company, however.The company continues to expand its business and has a positive outlook for performance.So, It is often done when investors have a very high level of trust in the company's stock price.After the split, the stock price tends to decrease and attract more individual investors.Companies with strong fundamentals tend to see an increase in stock prices in the short term after a split.
BofA sees stock splits as a demonstration of strength, and companies that have carried out stock splitsAccording to data, pointed out that there are. According to the data,Companies that announce stock splits usually tend to outperform the market.indicates. According to analysis released by Bank of America Global Research Center in February, since 1980, the stock prices of S&P500 constituent stocks that announced stock splitsThe average increase in stock prices was 25.4% over the course of 12 months, while the S&P500 index only rose by 11.9% during the same period.Companies that announce stock splits usually tend to outperform the market.Companies that announce stock splits usually tend to outperform the market.According to the analysis from the Bank of America Global Research Center, the stock prices of S&P500 constituent stocks that announced stock splits have significantly outperformed the index after 3 months, 6 months, and 12 months.The average increase in stock prices was 25.4% over the course of 12 months, while the S&P500 index only rose by 11.9% during the same period.The average increase in stock prices was 25.4% over the course of 12 months, while the S&P500 index only rose by 11.9% during the same period.
Will Nvidia bring a new era of stock splits to US stocks? Who will be the next key to wealth?
Stock splits alone are not a panacea.
While stock splits can bring excessive returns,it is not necessarily always the case.. For example, $Tesla (TSLA.US)$After splitting 1 share into 3 shares on August 25, 2022,it dropped by about 40% cumulatively,Therefore, it is not certain that there will be a sustained increase after the stock splits. However, when Tesla split one share into five shares on August 31, 2020, there wasthe stock price rose by more than 150% in just over a year.I did.
Furthermore, in a more influential case, $Apple (AAPL.US)$after splitting 1 share into 7 shares in June 2014, the stock price plummeted from over $600 to over $90, but then,it surged by nearly 5 times in a bullish market.The stock split of 1 share into 4 shares by Apple on August 31, 2020 did not show as much increase as the previous one, resulting in a rise of about 30% over the year.It remained at around 30% increase.remained at.
In addition, $Alphabet-A (GOOGL.US)$After the split of 20 shares per share on July 18, 2022, it rose by about 60% cumulatively.a cumulative increase of about 60%I did. $Amazon (AMZN.US)$After announcing a stock split of 20 shares per share on March 9, 2022, and the ex-rights date on June 6, 2022.About a 50% increase cumulatively.Shown.
Nvidia's stock split, increasing the possibility of being adopted by Dow Inc.!?
According to Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, since 2020, S&P 500 companies have implemented 31 stock splits, which is significantly below the levels of the early 2000s and late 1990s.
For Nvidia, the greater significance of stock splits is.It is likely to be adopted by the Dow Jones Industrial Average (Dow), which consists of excellent stocks.This is because previously, Nvidia's stock price was approaching $1000, potentially causing significant biases in the index if included in the Dow Average (Dow is weighted by stock price, not market capitalization).This issue will be resolved by the stock split.Due to stock splits, Nvidia's stock price dropped to about $100, ranking 20th, following $Merck & Co (MRK.US)$and reaching a level comparable to $Disney (DIS.US)$and $3M (MMM.US)$to line up.
アナリストは、Nvidia is considered to have all the necessary conditions to become a constituent stock of the Dow average, including a good reputation, a history of sustainable growth, investor interest, and industry representation in a broader market. Broadcasting speculates that Nvidia may become a constituent stock of the Dow average in the latter half of this year or by 2025Is
Source: Bloomberg, Bank of America Corp, moomoo
moomoo news of individual stocks Sherry
This article utilizes auto-translation in some parts.
Will Nvidia bring a new era of stock splits to US stocks? Who will be the next key to wealth?
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
80
3
2
1
+0
3
See Original
Report
266K Views
Comment
Sign in to post a comment
avatar
moomoo News Official Account
33KFollowers
2Following
76KVisitors
Follow