According to the Futubull finance APP, the number of companies implementing stock splits has been increasing since this year, which has led Wall Street to start paying attention to who might be next. Some analysts believe it could be$Meta Platforms (META.US)$.

Meta is the only company among the "Big Seven" that has never split its stock. Despite the fact that the stock has fallen from its April high, it has still risen more than 450% from its 2022 low.

Ken Mahoney, President of Mahoney Asset Management, said that Meta's stock price has exceeded $500, and the timing of the split has matured. Over the past year, the stock has benefited from interest in AI exposure, share buybacks, and dividends.

Although stock splits do not change the fundamentals of a company, they can lower the per-share price. This can make stocks more attractive to small individual investors and employees, who might otherwise be scared off by high share prices. It may also make top tech stocks more likely to be included in the price-weighted Dow Jones Industrial Average - currently, none of the stocks in this index trades above $500 per share.

In addition, this operation of stock splitting cannot guarantee that the company's stock price will outperform the market: According to Bank of America's data, approximately 30% of stocks have negative returns in the 12 months after the stock split. In addition, an analysis by Trivariate Research found that the performance of large-cap companies after stock splits in the future year is mixed. For example,$Tesla (TSLA.US)$the stock price fell after the most recent stock split,$Nike (NKE.US)$and it was the same after the stock split in 2015.

However,$NVIDIA (NVDA.US)$After announcing a 10-for-1 stock split in May, the company's stock price began trading at the adjusted price on Monday, and the stock price has since risen by 28%, making this practice once again the focus of attention. This AI company is the sixth constituent company to announce stock splitting this year, an increase from the four in 2023.$S&P 500 Index (.SPX.US)$Bank of America analysts believe this is a sign of the future development of the technology industry. Nvidia's stock split marks the fourth company among the "Seven Giants" to take such a measure since 2022—the other three are Bank of America, Tesla, and Other. They split their stocks in 2020.

Bank of America recently identified potential stock-splitting companies, including Companies A, B, and other technology companies. Analysts also pointed out that Company C may also be preparing for a stock split, although their stock price has not approached $500 per share, as the company has not taken this action in the past 20 years.$Alphabet-A (GOOGL.US)$, $Amazon (AMZN.US)$And Tesla -$Apple (AAPL.US)$had already split in 2020.

Bank of America recently identified companies that may undergo stock splits, including$Broadcom (AVGO.US)$, $Lam Research (LRCX.US)$, $Super Micro Computer (SMCI.US)$, $KLA Corp (KLAC.US)$ and $Netflix (NFLX.US)$and other technology companies. Analysts also pointed out that$Microsoft (MSFT.US)$Although the stock price has not approached $500 per share, it is possible that they are preparing for a stock split, as the company has not taken this measure in more than 20 years.

Editor / ruby