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Should Priceline and Google Split Their Shares?

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

   

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/.

©2014 InvestorPlace Media, LLC

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