Prediction: This Beloved Consumer Brand -- Up 62,500% Since Its IPO -- Will Be the First Prominent Stock-Split Stock of 2025

Group 1 - The stock market has seen significant gains since October 2022, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite increasing by 36%, 56%, and 79% respectively by February 7, 2025 [1] - Artificial intelligence (AI) is a major factor contributing to the stock market's outperformance, with a projected 15.7 trillion addressable market by the end of the decade [2] - Investor enthusiasm surrounding stock splits has also played a role in lifting stock valuations, alongside factors like declining inflation rates and political developments [3] Group 2 - A stock split allows a company to adjust its share price and outstanding share count without affecting its market capitalization or operating performance [4] - Forward stock splits are preferred by investors as they lower the nominal share price, making it easier for retail investors to purchase shares [6] - Companies that conduct forward splits tend to outperform the S&P 500 in the 12 months following the announcement, indicating their strong market position [7] Group 3 - In 2024, over a dozen companies completed stock splits, with only one being a reverse split, highlighting a trend towards forward splits [8] - Costco Wholesale is identified as a leading candidate for a stock split in 2025, with over 36% of its shares owned by retail investors and a high nominal share price of approximately 1,044 [12] - Costco's business model, which includes bulk purchasing and membership fees, contributes to its significant stock performance since its IPO, with a 62,500% gain [12][13] Group 4 - Costco's stock is currently trading at a high valuation of 57 times forecast earnings per share for 2025, which is more than double the S&P 500's consensus P/E ratio [14] - A stock split could help mitigate concerns about Costco's expensive valuation, potentially attracting more investors [15]