As expected, AMZN stock, in the run-up to the split, gained significantly, rewarding investors handsomely.
More companies realize that their stocks are overvalued, and a stock split is necessary. They’re looking to spruce up their stock price by allowing investors to purchase shares at a discount.
|CMG||Chipotle Mexican Grill, Inc.||$1,317.04|
|COST||Costco Wholesale Corporation||$463.31|
|CHTR||Charter Communications, Inc.||$474.19|
|BKNG||Booking Holdings Inc.||$2,104.96|
|ORLY||O’Reilly Automotive, Inc.||$607.44|
Company Stock Splits: Tesla (TSLA)
Tesla (NASDAQ:TSLA) is a car company making waves in the automotive industry.
It started as an electric car manufacturer but now has expanded to other products such as solar roofs, batteries and energy storage systems. Tesla also offers a share of its stock for people who want to invest in their company.
Whenever Elon Musk does, there’s a good chance that news outlets or media outlets will report on it. That is why there is so much fanfare around his interest in Twitter (NYSE:TWTR).
Tesla is an innovative company that provides electric cars and other clean energy options. However, the high stock price can significantly lower your appetite over time. Therefore, Tesla is always a candidate for a stock split. There are reports plans are in place for one. However, Elon Musk is tight-lipped regarding when it will take place. But considering the stock price, this should be on your radar.
Chipotle Mexican Grill (CMG)
Chipotle Mexican Grill (NYSE:CMG) is one of the most successful restaurant chains in the world, with a very loyal customer base. It has over 2,900 locations worldwide and high-quality food.
The fast-casual chain of restaurants specializing in burritos, tacos, burrito bowls and salads sells over 50 million pounds of food each year.
Chipotle Mexican Grill was founded by Steve Ells in 1993 when he left his job as a line cook at McDonald’s to start his own business. The first Chipotle location opened in Denver, Colorado, followed by two more restaurants in 1995. It has never looked back since. In its most recent quarter, the fast-food giant reported a net income of $158.29 million on revenue of $2.02 billion. Both figures showed double-digit growth from the year-ago period, indicating that consumers are interested in the product.
Its shares have risen significantly in the last five years, up 168%. That and the fact that the company has never done a stock split make it a can’t-miss prospect.
Company Stock Splits: Equinix (EQIX)
Equinix (NASDAQ:EQIX) is a company that provides data centers to other companies. They also offer cloud computing services, network connectivity and managed hosting. Today, EQIX is a company with 10,944 employees that consist of 240 data centers in 66 metros and 27 countries.
The number of data centers around the world is increasing. The increase in data centers has been attributed to the growing demand for cloud computing, an online service that allows users to access and store data online.
The stock price has been rising steadily and is at a very high point. The last share split occurred in 2020, and since the current price is so high, there’s a good chance of another one happening soon.
Costco (NASDAQ:COST) is a membership warehouse store with over 831 locations worldwide. They offer a wide range of products and services at low prices. Costco has one of the highest profit margins in the retail industry.
Costco is a popular membership retailer that offers excellent value to members. They negotiate cheaper prices from suppliers, which they then pass along to their members. Their reputation has grown, and their size and perspective mean they can negotiate better than other retailers.
Costco provides impressive and consistent performance, which has attracted a lot of investor interest. A stock split would make it easier for people to invest, which would create more buy-in among investors.
Company Stock Splits: Charter Communications (CHTR)
Charter Communications (NASDAQ:CHTR) is a company that offers cable, internet and phone services.
The company started as a small cable provider but has since expanded to offer internet, phone and television services to millions of customers across the United States.
The focus is now on streaming; therefore, cable providers are in trouble. Nevertheless, Charter’s earnings were at the highest estimates analysts were expecting and beat the revenue expectations too. Investors haven’t been the happiest recently and feel especially skeptical about technology and the highly competitive telecom market. Charter numbers weren’t good enough to turn this around.
However, despite secular tailwinds against the company and the recent earnings misstep, shares are still very expensive. At the time of writing, shares are changing hands for $450.80. This is a mature business with defensive characteristics. Therefore, it makes sense the stock price is holding steady. But it also means CHTR is a great prospect for a stock split.
Booking Holdings (BKNG)
The travel industry is changing with the rapid adoption of digital technologies.
With the increase in digitalization, companies have to adapt to survive. One way for them to do that is by adopting digital innovations and AI tools.
The travel industry is one of the most popular industries, with many people traveling yearly. With a rapidly growing market, companies are using AI tools to help them gain a competitive edge.
Booking Holdings (NASDAQ:BKNG) provides its services through online networks. It offers travel fare aggregators, like Kayak and Agoda, along with several online-only ways to book stay accommodations on the go via their website.
Booking Holdings is the parent company of the companies Priceline and Booking.com, which both provide online travel to multiple destinations. Booking price momentum has been positive, and its share price has tripled in the past decade. Now that we are seeing the travel industry recover from the pandemic, shares can only go northward. Splitting shares could be up next.
Company Stock Splits: O’Reilly Automotive (ORLY)
O’Reilly Automotive (NASDAQ:ORLY) is a commercial and retail customer. They are an auto parts retailer that provides automotive aftermarket parts, tools and accessories.
It has been in business since 1957. The company has a wide variety of products and services for commercial and retail customers. Their main focus is on the auto industry, but they also offer products for other industries such as construction, agriculture, aerospace, marine, aviation, military and more.
O’Reilly has been on the market for a long time and has seen its fair share of ups and downs. However, it has managed to survive the years that have passed since its last stock split. The company’s most recent split came in 2005, followed by many moons of growth and prosperity. That makes ORLY stock a prime candidate for a stock split.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.