Should Priceline and Google Split Their Shares?

Mastercard shows the way, but who is going to follow?

   

Should Priceline and Google Split Their Shares?

On Dec 10, Mastercard (MA) announced it would split its $763 a share stock 10-for-1. It also announced it would increase its dividend 83% and would initiate a $3.5 billion share repurchase program.

Investors cheered the announcement, pushing the shares up 4.2% the next trading day.

But the move will take Mastercard out of the race to be in the exclusive $1000-a-share club which is currently occupied by heavyweights Google (GOOG) and Priceline (PCLN).

Some investors argue that a high priced stock doesn’t perform as well as one under $100 because fewer investors have the firepower to buy it.

But that wasn’t the case with Mastercard. Before the split was announced, Mastercard shares were up 48.7% on the year.

That also doesn’t appear to be a problem for Priceline. Its shares are up 92.2% on the year. It also continued to rise well after it passed the golden $1000 level on Sep 18.

1386779143 scaled 425 Should Priceline and Google Split Their Shares?

Are you a fan of stock splits?

Should Priceline be next to split its shares?

MASTERCARD INC (MA): Free Stock Analysis Report

PRICELINE.COM (PCLN): Free Stock Analysis Report

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Article printed from InvestorPlace Media, http://investorplace.com/2013/12/priceline-split-shares-real-time-insight/.

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