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MercadoLibre (NASDAQ:MELI): I could have gone with a stock like Alphabet ($99.97|0.34%), but instead I chose MercadoLibre. Will it happen? There’s been no sign of it so far, and Shopify seems to be heading down the path of Amazon, where investors will always regret calling the stock too expensive. Now, shares are trading at a premium, and with a relatively low share float of only 112 million, the company can execute a split without worrying about too much dilution. Shopify was a wonderful story a few years ago when the stock was returning exponential gains to those who were lucky enough to get in early. version of the stock is just as pricey at almost $1,600 USD per share.
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Shopify (NYSE:SHOP): On the Toronto Stock Exchange, Shopify’s Canadian stock just hit $2,000 CAD per share for the first time in its history. It seems as though Amazon is perfectly fine keeping its share price higher, so don’t expect a stock split anytime soon. This led to rumors that new CEO Andy Jassy would be more inclined to allow one.
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Many believed it was former CEO and current Executive Chairman Jeff Bezos who was against a stock split. At its current price of just over $3,600.00 per share, Amazon is one of the most expensive stocks on the market. No matter how you spin it, the markets get excited for stock splits, so let’s take a look at three companies that are long overdue for one.Īmazon ($115.25|0.16%): This is probably the one stock that first pops in everyone’s mind when we talk about stock splits. For advanced traders, a cheaper share price means you can buy more shares, which can come in handy if you like to make premiums by selling covered calls. Aside from buying fractional shares, a high share price can be daunting and dissuade people from even trying to invest in the company. But you also cannot deny the psychological impact a stock split has on the minds of investors, particularly retail investors. As the saying goes: there are just more slices of the same pizza. Mathematically speaking, a stock split does nothing to alter the value of a stock or company. But that’s not really how it works, right? Last year, Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) both executed stock splits and saw a tremendous bull run into the split date, as investors tried to get their hands on as many shares of these valuable companies as possible.
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