Moreover, stock splits usually signify that the companies have had financial success and that the individual share price has gotten too high for the small investor to buy in; therefore, a split in many cases is performed. Often the split itself can boost the share price of the company.
Chart and analysis
Similarly, on Wall Street, analysts deem the shares a strong buy, predicting that the average price the shares will trade for in the next 12 months is $3,603, which represents a potential upside of 48.06, from the current trading price of $2,433.68. Similarly, in recent months AMZN stock received its first sell rating since 2020 and has been removed from the best idea list by prominent analysts. In essence, adding AMZN shares to the Dow at these price levels would give it too much leeway on the index itself, but with the split, it could fit in nicely. Consequently, the market makers and the post-split performance of the company will decide whether this speculative notion of inclusion in the Dow is realized or not. In summary, stock splits can benefit small retail investors who are not content with owning fractional shares of a company they feel strongly about. There also seems to be something psychologically easier to invest in lower-priced shares than higher-priced ones. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
