Could more companies split their stock in coming months?
After Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) announced plans to split their stock at the end of August, a growing number of people are calling on other companies to split their high-flying stocks and make them more affordable for retail investors.
On Wednesday, Jim Cramer, host of CNBC’s "Mad Money" TV show, called on 10 companies to follow the lead of Apple and Tesla and split their stocks.
"If you want the market to keep climbing, these ten companies — and many more — need to start taking their cue from Tim Cook and Elon Musk," Cramer said. "Remember, the size of the price tag matters with this young investing crowd and you want this no-commission paying crowd in your stock."
The companies Cramer called on to split their stocks are:
Amazon - $3,162.24 per share
Alphabet - $1,507.24
Chipotle - $1,160.92
Netflix - $475.47
Nvidia - $457.61
Adobe - $445.36
Costco Wholesale - $336.76
Home Depot - $281.58
Facebook - $259.89
Microsoft - $209.19
Except for Microsoft, most of the companies on the list have never split their stock. Cramer said splitting the stock and lowering its price per share will attract more retail investors who are sensitive to price.
"Splits are good for home gamers, bad for professionals and we know what happens after the split. This new cohort of investors, the ones who love low-dollar amount stocks, will start buying and holding these best-of-breed names rather than the darned penny stocks," said Cramer.
