Stock Split

Search documents
Stock-Split Watch: Is Rigetti Computing Next?
The Motley Fool· 2025-08-03 23:30
Core Viewpoint - Stock splits can be used by companies to manipulate share prices and outstanding shares, and Rigetti Computing may be on stock-split watch due to its significant stock price increase and interest in quantum computing [2][3][10]. Group 1: Stock Splits Overview - Stock splits allow companies to change their share price and outstanding shares without affecting market capitalization, maintaining investors' equity positions [3][6]. - Traditional stock splits lower share prices while increasing the number of outstanding shares, whereas reverse stock splits do the opposite [3][5]. Group 2: Rigetti Computing's Performance - Rigetti Computing has gained attention in the quantum computing sector, with a market cap of $4.7 billion after a 1,370% increase in stock price over the past year [10]. - The company achieved a significant milestone with its 36-qubit system, which had a two-times lower gate error rate, and aims to replicate this success with a 100-qubit system [9]. Group 3: Stock Split Considerations - Rigetti previously faced potential delisting due to trading below $1 but has since complied with Nasdaq's requirements, reducing the need for a reverse stock split [10][11]. - Despite the stock's rise, there is no immediate necessity for Rigetti to conduct a stock split, as the current price of $15 is not seen as unattainable [10][12].
The Most Anticipated Stock Split of 2025 May Be Announced Later Today
The Motley Fool· 2025-07-30 07:06
Core Insights - The article discusses the potential for a stock split announcement by Meta Platforms, which could be a significant event in 2025's stock market landscape [1][6][20] Stock Split Dynamics - A stock split is a method for publicly traded companies to adjust their share price and outstanding share count without affecting market capitalization or operational performance [2] - Forward splits are generally viewed positively by investors as they make shares more affordable, while reverse splits are often seen negatively due to their association with operational weakness [4][5] Recent Stock Split Activity - In 2025, only three prominent companies have announced and completed stock splits, with none from the tech sector [8] - O'Reilly Automotive was the first notable company to declare a split (15-for-1), benefiting from a trend of Americans keeping their vehicles longer and repurchasing shares [9] - Interactive Brokers Group completed its first forward split (4-for-1) and reported significant growth in customer accounts and daily average revenue trades [10] - Fastenal completed a 2-for-1 split, marking its ninth split since going public, reflecting its integration into industrial supply chains [11] Meta Platforms' Position - Meta Platforms is positioned favorably for a stock split, with over 27% of its outstanding shares held by retail investors and a share price consistently above $700 [15] - The company's social media platforms attract an average of 3.43 billion daily users, allowing it to charge premium ad rates [16] - Meta generates 98% of its net sales from advertising, which is a strong indicator of long-term success in an expanding economy [17] - The company's future growth is heavily reliant on its investments in artificial intelligence, with significant spending on AI data centers and integration into its platforms [18] - Meta's strong financial position, with over $70 billion in cash and generating $24 billion in net cash from operations in Q1 2025, supports its potential for innovation and shareholder returns [19]
Stock-Split Watch: Is CoreWeave Next?
The Motley Fool· 2025-07-29 00:32
Stock splits can also boost liquidity. An example of a stock split would be a 2-for-1 stock split. Let's say an investor owned 10 shares of a stock trading at $200 per share, meaning their total equity position amounted to $2,000. In this scenario, the company would exchange two shares for each one the investor owned, so the number of shares the investor owned would double from 10 to 20. But remember, the equity position of $2,000 remains the same, so the new share price would be $100 ($2,000/20 shares). A ...
Stock-Split Watch: Is Newsmax (NMAX) Next?
The Motley Fool· 2025-07-27 16:54
Core Viewpoint - Newsmax has experienced significant volatility since its IPO, with shares initially priced at $10 soaring to $265 before falling to around $14, indicating a turbulent market response [1]. Stock Performance - Newsmax's stock price peaked at $265 shortly after its IPO on March 31, 2025, but has since declined to approximately $14 as of July 21, 2025 [1]. - The company reported $171 million in revenue for the previous year, with a market capitalization of $1.9 billion, resulting in a price-to-sales (P/S) ratio of about 11, significantly higher than its competitor Fox, which trades at 1.5 times last year's sales [11]. Stock Split Considerations - A forward stock split is generally seen as a positive sign, indicating a high share price, but given the current decline in Newsmax's stock price, a forward split is unlikely [5][8]. - A reverse stock split could be a possibility if the stock price continues to fall, although it is not currently at risk of being delisted from the New York Stock Exchange [9][10]. Audience and Growth - Newsmax's audience grew by 50% year over year in Q1 2025, reaching 33.6 million viewers, supported by distribution deals with platforms like YouTube TV and Hulu+ Live TV [12]. - The company has a politically conservative stance, which has helped cultivate a loyal viewer base, although it has faced legal challenges related to defamation lawsuits from voting systems suppliers [12][13]. Financial Challenges - Despite a 26% year-over-year revenue increase in 2024, Newsmax reported a loss of $72 million, which is 73% worse than its losses in 2023 [11]. - The ongoing legal issues, particularly the lawsuit from Dominion, pose a risk to the company's financial stability and could lead to further losses [13].
Stock-Split Watch: Is C3.ai Next?
The Motley Fool· 2025-07-24 10:30
Core Viewpoint - C3.ai has been underperforming since its IPO, with a significant decline in stock price, raising questions about a potential stock split as a strategic move to attract retail investors [2][8]. Group 1: Stock Splits and Their Implications - A stock split allows a company to decrease its share price and increase its shares outstanding, while a reverse stock split does the opposite, but neither affects the company's market capitalization [4]. - Companies may conduct stock splits to make their shares more appealing to retail investors, especially if the share price is perceived as too high [5]. - A reverse stock split can help companies maintain compliance with exchange requirements if their stock price falls below $1 for an extended period [6]. Group 2: C3.ai's Current Situation - C3.ai's stock price has dropped from a high of $161 to around $28.50, with a current market cap of $3.9 billion, indicating that the stock is not out of reach for investors [8]. - The company has not conducted any stock splits since its IPO at $42 in late 2020, and the majority of its nearly 131 million outstanding shares are public, suggesting no immediate need to boost liquidity [9]. - C3.ai reported a loss of nearly $289 million on revenue of about $389 million in its fiscal year, indicating potential overvaluation, with a short interest of close to 21% of the public float [10]. Group 3: Potential and Future Outlook - Despite being perceived as overvalued, C3.ai possesses strong potential due to its software that aids developers in building AI applications, even for those with limited experience [11]. - The likelihood of C3.ai experiencing a significant sell-off that would necessitate a reverse stock split appears low, even though market conditions could change [12].
Prediction: This Could Be Meta's Next Big Move (and It May Happen on July 30)
The Motley Fool· 2025-07-22 07:15
The company is set to report quarterly earnings on July 30. That's when investors will likely learn more about this AI growth story and of course get a close look at revenue, profit, and more. But that may not be Meta's biggest news. Instead, Meta might make another announcement that will grab investors' attention. My prediction is this could be the tech giant's next major move. Meta Platforms (META 1.22%) has been a mover and a shaker in this artificial intelligence (AI) boom. You may know the company best ...
3 Scorching-Hot Artificial Intelligence (AI) Stocks Primed for a Stock Split -- One of Which Is a Familiar Face (No, Not Nvidia or Palantir!)
The Motley Fool· 2025-07-21 07:51
Since late 2022, the evolution of artificial intelligence (AI) has been Wall Street's hottest trend. The ability for software and systems empowered by AI to make split-second decisions without the aid of humans is a game- changing technology that the analysts at PwC estimate can add $15.7 trillion to the global economy come 2030. But AI isn't the only trend captivating the attention and wallets of investors. Excitement surrounding stock splits in influential businesses has also played a key role in sustaini ...
Nvidia and Broadcom: Here's How These Top AI Stocks Are Doing 1 Year After Their Stock Splits
The Motley Fool· 2025-07-21 01:30
Stock splits were a big thing last year, with many major companies across industries launching such operations. Two of the most exciting were in the area of artificial intelligence (AI). Nvidia (NVDA -0.42%), the world's No. 1 AI chip designer, and Broadcom (AVGO -1.12%), a networking giant, completed stock splits in June and July 2024, respectively. What is a stock split, and why do companies go this route? These operations enable a company to bring down a soaring stock price to more reasonable levels, mak ...
Wall Street's Most Anticipated Stock-Split Candidate Is the No. 1 Holding for 4 of the Smartest Billionaire Money Managers
The Motley Fool· 2025-07-17 07:51
Core Insights - The article highlights the growing interest in stock splits, particularly focusing on Meta Platforms as a key candidate for a forward stock split in 2025, which is favored by several prominent fund managers [10][12][20] Group 1: Stock Splits and Market Trends - The rise of artificial intelligence (AI) and stock splits have significantly contributed to the stock market's recent performance [2][4] - Stock splits are superficial adjustments that do not affect a company's market cap or operating performance, yet they can influence investor perception and share price [4][5] - Forward stock splits are generally viewed positively by investors, as they make shares more affordable and are often associated with companies that are outperforming their competition [6][7] Group 2: Meta Platforms' Position - Meta Platforms is the only member of the "Magnificent Seven" that has not completed a stock split, making it a highly anticipated candidate for such an event [10][20] - As of March, Meta was the top holding for four billionaire investors, indicating strong confidence in the company's future [12][13] - Meta's advertising-driven business model, which accounts for nearly 98% of its net sales, positions it well for growth despite economic cycles [15] Group 3: Financial Strength and Future Prospects - Meta has a robust financial position, closing March with $70.2 billion in cash and generating over $24 billion in net cash from operations in Q1 2025 [18] - The company's valuation remains attractive, with a trailing three-year gain of 340% and a forward P/E ratio of 25, suggesting potential for further upside [19] - The integration of AI solutions into its advertising strategy and the development of the metaverse are key growth drivers for Meta's future [16]
10 Stock Splits Investors Could See Happen in 2026
The Motley Fool· 2025-07-13 09:45
Group 1: Stock Splits Overview - Stock splits are becoming less common due to the availability of fractional shares, but they still serve purposes such as employee compensation [1] - Stock splits can generate excitement among investors and may lead to stock price surges, making it a strategic time to acquire stocks that are potential candidates for splits [1] Group 2: Microsoft - Microsoft, currently trading around $500, may be compelled to split its stock to maintain its position in the Dow Jones Industrial Average, as it is the second most expensive stock in the index [3][4] Group 3: Goldman Sachs - Goldman Sachs, the most expensive stock in the Dow at over $700, may also consider a stock split next year to remain a manageable component of the index [5] Group 4: Meta Platforms - Meta Platforms, trading at approximately $725, could be a candidate for a stock split as the Dow transitions to include more AI-focused companies [6] Group 5: Berkshire Hathaway - Berkshire Hathaway's Class A shares are unlikely to split due to their high price of over $700,000, but the more affordable Class B shares at $477 could be considered for a split next year [7][8] Group 6: Costco - Costco, which has seen its stock price exceed $1,000, may announce a stock split in 2026 as it becomes a candidate for such action [9] Group 7: Netflix - Netflix, with shares trading around $1,250, may also consider a stock split in 2026 to manage employee compensation costs associated with stock options [10] Group 8: ASML - ASML, currently trading at approximately $800, may consider a stock split in anticipation of strong growth in the semiconductor sector [11] Group 9: ServiceNow - ServiceNow, trading around $1,000, is benefiting from AI integration and could be a potential candidate for a stock split as its stock continues to rise [12] Group 10: Fair Isaac Corporation - Fair Isaac Corporation, known for credit scoring, has seen its stock rise to over $1,600 and may announce a split next year despite a recent decline from its 52-week high of $2,400 [13] Group 11: MercadoLibre - MercadoLibre, a leading e-commerce and fintech company in Latin America, has a stock price of $2,400 and could be ripe for a stock split in 2026 [14] Group 12: Investment Considerations - Even if some companies do not proceed with stock splits, they may still represent strong investment opportunities, with compelling cases beyond the potential for a split [15]