Short-term movements in US stocks are always elusive, and when market volatility increases, especially during downturns, investors tend to seek the stability of sector leaders who historically outperform the S&P 500 index. FAANG stocks have been supported by investors for years, but companies implementing stock splits tend to attract attention during uncertain times.
Stock splits are understood as events in which companies adjust stock prices and outstanding shares in the same proportion, and are cosmetic phenomena that do not have a significant impact on the market capitalization or performance of companies.
There are two types of stock splits: forward splits and reverse splits. Forward stock splits lower the nominal stock price of a company, making it easier for individual investors who cannot afford high-priced stocks to purchase. Conversely, the purpose of reverse stock splits is to raise the company's stock price to meet minimum listing requirements on major stock exchanges.
While there are cases of successful reverse stock splits, many investors are paying attention to companies implementing forward splits. Such companies typically outperform their industry peers in innovation and execution, with expectations of long-term outperformance...