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Are Costco and Netflix About to Become Wall Street's Next Stock-Split Stocks?
The Motley Fool· 2025-07-08 07:06
Core Insights - The stock market is experiencing a dual trend of excitement around artificial intelligence (AI) and stock splits, with stock splits gaining significant attention [1][2] Stock Split Overview - A stock split allows a company to adjust its share price and outstanding share count without affecting its market capitalization or operational performance [2] - Reverse splits are generally viewed negatively by investors, often associated with struggling companies trying to avoid delisting [3] - Forward splits are favored by investors as they make shares more affordable, potentially leading to better operational performance [5] Historical Performance - Companies that have executed forward splits since 1980 have averaged a 25.4% return in the year following the announcement, significantly outperforming the S&P 500's 11.9% average return over the same period [6] Potential Candidates for Stock Splits - Costco and Netflix are being considered as potential candidates for stock splits in 2025, with Costco's share price nearing $1,000 and Netflix's around $1,300 [8][10] - Both companies have not conducted a stock split in many years, raising investor interest [9][10] Costco's Position - Costco's management does not currently see the necessity for a stock split, citing the prevalence of fractional-share purchases as a reason [12][14] - The company will continue to evaluate the situation but has no immediate plans for a split [13][15] Netflix's Position - Netflix is unlikely to announce a stock split due to the high percentage of shares held by institutional investors (80.2%), who do not require lower nominal prices [17][18] - Retail investor ownership at nearly 20% is not low enough to create urgency for a split, unlike other companies with even lower retail ownership [19]
PriceSmart Announces Change to Previously Scheduled Conference Call
Prnewswire· 2025-06-27 12:00
Core Points - PriceSmart, Inc. will hold its conference call for the third quarter financial results on July 14, 2025, due to a scheduling conflict [1] - The financial results will be released on July 10, 2025, after market close [2] Company Overview - PriceSmart operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, with 55 clubs across 12 countries and one U.S. territory [3] - The company plans to open two new warehouse clubs, one in Quetzaltenango, Guatemala in August 2025 and another in La Romana, Dominican Republic in spring 2026, bringing the total to 57 clubs [3]