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Oct 23, 2023

Companies that Could See Stock Splits in the Future

Stock splits have regained popularity among investors in recent years, thanks to the availability of no-cost and low-cost stock trading. Investors can now buy stocks in any quantity, making lower-cost

Stock splits have regained popularity among investors in recent years, thanks to the availability of no-cost and low-cost stock trading. Investors can now buy stocks in any quantity, making lower-cost stocks more appealing for those with smaller monthly investing budgets. In 2022, several investor-favorite companies announced stock splits, indicating the importance of keeping shares affordable for the average investor.

Here are three companies that could potentially have stock splits in the future:

1. NVR: Despite challenges in the housing industry, NVR stock remains near an all-time high. The company benefits from historically high mortgage rates, which create a shortage of existing homes for sale and drive demand for new construction. NVR also minimizes its financial obligations and risk by using land purchase agreements to acquire finished lots. With solid financial results and a soaring stock price, a split may be on the horizon.

2. MongoDB: MongoDB specializes in cloud-native databases, offering robust functionality and AI tools. Even during economic downturns, the company has shown impressive growth, with expanding revenue and an increasing customer base. The stock has rebounded and experienced significant growth, making a split a possibility.

3. Microsoft: Microsoft is a tech giant known for its Windows operating system and enterprise software applications. The company has made notable investments in AI and offers its Azure platform for AI services. With consistent growth and increased demand for AI, Microsoft’s stock has performed well, making a split a potential consideration.

While stock splits don’t change the underlying value of a business, they make shares more accessible and affordable for investors. Companies recognize the importance of keeping shares at a reasonable price, especially considering the current resurgence on Wall Street. As these three companies continue to thrive, stock splits could be on the horizon.