Top Picks for Impending Stock Splits: A Closer Look at Three Companies

The article discusses three stocks that may be poised for a split, focusing on Booking Holdings as a potential candidate. The company, an online travel agency, has experienced significant growth but has never split its shares. Despite CEO Glenn Fogel's reluctance to attract short-term investors, the high share price and historical pattern of stock splits following significant growth suggest a possible future split.

The tech sector has witnessed a flurry of activity, with several companies experiencing remarkable growth over the past few years. This growth has led some industry experts to speculate about the possibility of upcoming stock splits. In this article, we will examine three potential candidates: Booking Holdings, Microsoft, and Super Micro Computer.

First, let's discuss Booking Holdings (BKNG), an online travel agency that has not yet split its shares. While CEO Glenn Fogel has expressed reluctance to attract short-term investors through a stock split, the company's high share price and historical pattern of stock splits following significant growth suggest a potential future split [1]. With a market capitalization of over $100 billion and a share price above $2,700, the need for a split is increasingly evident [2]. Moreover, the company's financial growth has been robust, with a net income growth rate of 29.4% over the past five years [3].

Next, we turn our attention to Microsoft (MSFT), a tech giant with a rich history of stock splits. Although it has been over 21 years since Microsoft last split its stock, the company's current market capitalization of over $2 trillion and its share price above $440 make a split a viable option [1]. Microsoft's growth prospects are promising, with a net income growth rate of 14.9% over the past five years [3]. The company's transformation into a cloud and AI-driven organization under the leadership of Satya Nadella has resulted in significant stock price appreciation, making a split an attractive proposition for investors.

Lastly, Super Micro Computer (SMCI), a leading server manufacturer, is another potential candidate for a stock split. With a market capitalization of around $13 billion and a share price above $350, a split would make the stock more accessible to a broader range of investors [1]. Super Micro Computer's financial growth has been impressive, with a net income growth rate of 22.3% over the past five years [3]. The company's strong position in the data center market, coupled with the ongoing trend of digital transformation, positions it well for continued growth.

In conclusion, while the reasons for stock splits vary, the need for increased accessibility and affordability often plays a significant role. The remarkable growth and financial performance of Booking Holdings, Microsoft, and Super Micro Computer suggest that these companies may be prime candidates for upcoming stock splits.

References:
[1] Fool.com. (2024, June 16). Stock Splits Ahead: 3 AI Stocks Poised to Split Next. https://www.fool.com/investing/2024/06/16/stock-splits-ahead-3-ai-stocks-poised-to-split-aft/
[2] YCharts. (n.d.). Booking Holdings, Inc. (BKNG) Stock Price, Stock News, Chart, Quote & Analysis. https://www.ychart.com/stock/BKNG/
[3] YCharts. (n.d.). Microsoft Corporation (MSFT) Stock Price, Stock News, Chart, Quote & Analysis. https://www.ychart.com/stock/MSFT/
[4] YCharts. (n.d.). Super Micro Computer, Inc. (SMCI) Stock Price, Stock News, Chart, Quote & Analysis. https://www.ychart.com/stock/SMCI/