The article discusses Bank of America's prediction that several strong technology companies will announce stock splits in 2025. Stock splits, while not altering a company's fundamentals, can enhance liquidity and attract a broader investor base. Historically, stocks that have split tend to outperform the market, with an average increase of 25% to 30% in the year following the split. Meta Platforms is highlighted for its significant stock growth and strong fiscal performance, making it a prime candidate for a stock split.
Meta's stock has surged by 219.8% in the past three years. Despite the significant price appreciation and solid fundamentals, the stock has never split.
Historically, stock-split stocks have been shown to grow between 25% and 30% in the year following the event, significantly outperforming the S&P 500's average yearly growth.
The increased liquidity from stock splits makes the stock more accessible to a larger shareholder base, positively affecting overall share prices.
Bank of America identified a list of 23 stocks that can be prime candidates for a stock split in 2025, highlighting growth potential.
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