Stock-Split Watch: Is Oracle Next?

As Oracle (ORCL) shareholders eagerly await the company's fiscal 2024 Q4 and full-year financial results, one question lingers in the minds of many: will Oracle follow the lead of other tech giants and execute a stock split? Let's dive into the potential benefits and drawbacks of Oracle splitting its shares at its current price level.

Potential Benefits:

1. Increased accessibility to retail investors: A stock split could make Oracle's shares more affordable to retail investors, potentially increasing demand and liquidity. With the current stock price hovering around $174, many retail investors may not have the capital to purchase shares at this level. A stock split could change that dynamic.
2. Potential increase in stock price: Some companies believe that a stock split can increase demand for their shares, leading to an increase in the stock price. Oracle's history of stock splits suggests that its share price has jumped significantly after previous splits. For instance, since its last split in October 2000, Oracle's stock price has soared by 373%.
3. Improved market perception: A stock split could signal to the market that Oracle is confident in its future prospects and is taking steps to make its shares more accessible to a broader range of investors. This could potentially boost the company's reputation and attract more investors.