NVIDIA ($NVDA) announced in it’s latest earnings report that it will be initiating a 10:1 stock split effectively starting June 7th, 2024 and should go into affect June 10th.
With NVIDIA costing more than $1,000 a share, the company felt it was a great opportunity to split their shares to attract more buyers, offering a lower barrier of entry.
I believe back in the day, stock splits used to be a bigger deal – because fractional share investing wasn’t quite a thing just yet.
However, with fractional share investing being adapted by more and more brokerage firms, it does not matter as much anymore the price of the investment – as many firms allow you to invest with as little as $1-$5 – which makes it much easier for everyone to invest into these larger priced investments on the stock market.
These are some other noticeable companies that have offered stock splits recently as well:
- Chipotle ($CMG) – 50:1 (fifty to one) – which will take effect on June 26th, 2024
- Walmart ($WMT) – 3:1 (3 to one) – which took effect earlier this year, Feb. 26th, 2024
