Cramer Is Wrong: The salesforce.com Stock Split Is Meaningless

Recently, CNBC commentator Jim Cramer took to the air to declare that stock splits matter, and that, in particular, salesforce.com's (NYSE: CRM  ) plan to split 4-for-1 could send the shares higher.

He's wrong, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video. The Salesforce stock split will only help those who don't fully understand the value of the underlying business. Management, meanwhile, says it wants to split Salesforce stock in order to increase liquidity for issuing equity options to employees (which it already does, in bulk).

As it stands, Salesforce's stock will officially split on April 18. Do you see the stock moving higher in the months following? Why or why not? Please watch Tim's take, and then leave a comment to let us know what you think of Salesforce's business prospects.

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  • Report this Comment On April 09, 2013, at 12:10 PM, plange01 wrote:

    the salesforce split is a huge move this is a stock that should be over $400 already.this one is going to split and move right back to where it is now...

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