Should Priceline and Google Split Their Shares?

by Zach | December 13, 2013 12:31 pm

Should Priceline and Google Split Their Shares?

On Dec 10, Mastercard (MA[1]) 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[2]) and Priceline (PCLN[3]).

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[4]

PRICELINE.COM (PCLN): Free Stock Analysis Report[5]

To read this article on Zacks.com click here.[6]

Zacks Investment Research[7]

Endnotes:
  1. MA: http://studio-5.financialcontent.com/investplace/quote?Symbol=MA
  2. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  3. PCLN: http://studio-5.financialcontent.com/investplace/quote?Symbol=PCLN
  4. MASTERCARD INC (MA): Free Stock Analysis Report: http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&d_alert=ZER_CONF&t=MA&ADID=INVESTORPLACE_CONTENT_ZER_ARTCAT_REAL_TIME_INSIGHT
  5. PRICELINE.COM (PCLN): Free Stock Analysis Report: http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&d_alert=ZER_CONF&t=PCLN&ADID=INVESTORPLACE_CONTENT_ZER_ARTCAT_REAL_TIME_INSIGHT
  6. To read this article on Zacks.com click here.: http://www.zacks.com/stock/news/116642/mastercard-is-the-latest-to-drop-out-of-the-%241000-a-share-club
  7. Zacks Investment Research: http://www.zacks.com/

Source URL: http://investorplace.com/2013/12/priceline-split-shares-real-time-insight/
Short URL: http://invstplc.com/1fpWjuU