美国银行最新发布的一份报告指出，英伟达拆股可能标志着科技公司拆股新趋势的开始。After Nvidia announced a split plan of 1 to 10, high-priced technology stocks such as Broadcom, Netflix, and ultra-microcomputer may also become candidates for the next batch of stock splits. Could this be a wealth code hidden behind this?
Nvidia, the king of GPUs, announced a stock split this week, and more retail investors will be able to join Nvidia's army.
On the 22nd, Nvidia took the opportunity of announcing the new financial report to incidentally announce the “1 split 10” plan, which officially came into effect on June 7. At that time, Nvidia's shareholders will receive an additional 9 shares for each common share. This is also the second time in recent years that Nvidia has split shares.
According to a recent report released by Bank of America, Nvidia's stock split may mark the beginning of a new trend of technology company stock splits.
Bank of America's report focused on 36 companies in the S&P 500 index. Their stock prices are all over $500, which are high-priced stocks. They are potential candidates for divestment. Technology companies such as Broadcom, Ultra Computer, Netflix, and ServiceNow are the main players, as well as online travel giants Booking with a stock price close to 3,800 US dollars, and pharmaceutical companies such as Eli Lilly and Regenerative Pharmaceuticals.
Meanwhile, Microsoft and Meta, the “Seven Sisters” of US stocks, are close to the $500 club. The next stock split is likely to fall on these seed players.
Why make a list of potential stock splits? This could be the password for the future of wealth.
Bank of America pointed out that historically, stocks can achieve an average return of about 25% within 12 months after announcing the split, while the index return for the same period was about 12%. After Apple split 4 in 2020, the stock price rose by more than 30% in the following year.
Because although a stock split does not change the market value of a company, a stock split often occurs when the company continues to expand and profit prospects are great. At this time, investors have strong confidence in the company's stock price, and the stock price after the split will drop, which can attract more retail investors to enter the market, so in the short term after the stock split, companies with good fundamentals can often increase their stock prices.
However, such excess earnings will not necessarily occur. After Tesla's stock split in 2022, it fell 6% within the next year.
This also means that after the stock split, the stock price may continue to strengthen, or it may also make a U-turn. It is also a probabilistic event that it will continue to rise after the stock split.