When a company decides to split its stock, it generates a lot of excitement. A stock split occurs when a company increases its number of shares outstanding by dividing existing shares or multiplying the share count and reducing the share price to compensate. A stock split lowers share prices but doesn't change a business's fundamental value or the total value of the shares owned by shareholders.
Stock splits in a growing business attract a lot of attention from retail investors. For example, after its recent split was announced (a 10-for-1 split on June 7, 2024), Nvidia's (NVDA 1.74%) stock price zoomed higher.
Retail Investor
Upcoming splits
Upcoming stock splits
As of this writing in June 2025, few high-profile stock splits are scheduled for the near future. Just one notable split for a U.S. company is on the calendar for the next couple of months:
- Brokerage firm Interactive Brokers (IBKR 1.01%) is scheduled to complete a 4-for-1 split on June 18.
There has also been speculation that megacap technology stocks Microsoft (MSFT -0.28%) and Meta Platforms (META 1.04%) could announce stock splits of their own in the not-too-distant future. Other stocks to watch for that could split in 2025 or soon after include:
- Credit rating and financial analytics company Fair Isaac (FICO 0.05%) hasn't split its stock since 2004. More than 20 years later, its shares are trading for around $1,800 in June 2025.
- Booking Holdings (BKNG 1.74%) did a reverse stock split in 2003 (back when it was known as Priceline.com) in the aftermath of the dot-com bubble. Every six shares investors owned at the time were consolidated into one share. Each share was worth more than $5,600 as of June 2025.
- Microsoft trades for about $470 per share in June 2025, which is a fraction of the price of the other two stocks on this list. However, the company has a history of splitting its stock and could be especially inclined to do so since it's part of the price-weighted Dow Jones Industrial Average.
Recent splits
Stock splits in 2024
A couple of notable stock splits have occurred over the past year or so:
- Palo Alto Networks (PANW -0.89%) underwent a 2-for-1 stock split on Dec. 16, 2024. Palo Alto's stock now trades on a split-adjusted basis, meaning shares traded on Dec. 16 for roughly half of their price on Dec. 15, and investors saw twice as many shares in their brokerage accounts.
- Tractor Supply Company (TSCO -0.29%) had a 5-for-1 stock split that took effect on Dec. 20, 2024. Investors then held four times as many shares as they had previously, with each share trading for about one-fifth of the share price prior to the split.
- Auto parts company O'Reilly Automotive (ORLY 1.02%) finalized a 15-for-1 stock split on June 10, 2025.
2024 was a fairly active year for stock splits, which is common in years when the stock market generally has a strong performance. Several high-profile stock splits made headlines. With that in mind, here's what you need to know about the most notable stock splits from 2024:
| Company | Stock Split | Announcement Date | Effective Date |
|---|---|---|---|
| Super Micro (NASDAQ:SMCI) | 10-for-1 | Aug. 6, 2024 | Oct. 1, 2024 |
| Deckers Outdoor (NYSE:DECK) | 6-for-1 | Sept. 9, 2024 | Sept. 16, 2024 |
| MicroStrategy (NASDAQ:MSTR) | 10-for-1 | July 11, 2024 | Aug. 1, 2024 |
| Broadcom (NASDAQ:AVGO) | 10-for-1 | June 12, 2024 | July 15, 2024 |
| Chipotle Mexican Grill (NYSE:CMG) | 50-for-1 | March 19, 2024 | June 25, 2024 |
| Walmart (NYSE:WMT) | 3-for-1 | Jan. 30, 2024 | Feb. 26, 2024 |
1. Super Micro Computer
Server company Super Micro Computer announced a 10-for-1 stock split in August 2024. The company paid out an extra nine shares of stock for every share owned by shareholders. The distribution took place at market close on Oct. 1, 2024.
2. Deckers Brands
The parent company of UGG, Teva, and other popular apparel brands announced the approval of its split following its 2024 annual meeting. For shareholders of record on Sept. 6, 2024, Decker executed a 6-for-1 split by paying five extra shares for every share owned. The distribution took place at market close on Sept. 16, 2024.
3. Strategy
Strategy (formerly MicroStrategy) announced its 10-for-1 stock split on July 11, 2024. Shareholders of record on Aug. 1 received nine additional shares for each share they owned. The distribution took place at the close of the market on Aug. 7, 2024.
4. Broadcom
Massive technology company Broadcom announced its 10-for-1 stock split along with its second-quarter earnings report on June 12, 2024. Shareholders of record on July 11 received an additional nine shares for each share they owned. The distribution took place on July 15.
5. Chipotle Mexican Grill
The highly successful restaurant operator Chipotle announced a 50-for-1 stock split (one of the largest in New York Stock Exchange history) on March 19. For every share owned, 49 new shares were distributed, and the stock began trading on a split-adjusted basis on June 26.
6. Walmart
The massive retailer announced a 3-for-1 stock split in late January, which it completed in late February 2024. The split was completed to make Walmart's shares more accessible to retail investors.
Purpose
Why companies do stock splits
Stock splits (as well as reverse stock splits) typically don't change the fundamental value of a company. They also don't change an investor's ownership stake in the company. For example, if you own a slice of pizza equal to one-quarter of the whole pie, cutting your slice up into smaller pieces doesn't change the fact that you still have one-quarter of the total pizza.
Since a stock split doesn't really fundamentally change anything, why would a business choose to do one? Often, it has to do with attracting new investors. A lower price per share attracts a lot of individual investors to a popular company.
Additionally, many publicly traded companies give employees an ownership stake in the business by granting them shares in the form of stock-based compensation. A lower share price can help a business manage the benefits issued to its employees.
Employee Stock Ownership Plan (ESOP)
Also, many companies repurchase shares as part of a return on investment to existing shareholders. A lower share price can help a company manage the purchases and returns to investors.
Take Amazon (AMZN 2.66%) as an example. In the filing for its 2022 stock split, the company stated, "The stock split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company."
Related investing topics
Should I invest?
Should you buy a stock because of an upcoming split?
If you are a long-term investor who plans to own shares of a company for at least a few years, an upcoming stock split is no reason to buy an ownership stake in a business. A company generally has good reasons for initiating a split, but it doesn't change the fundamental value for shareholders.
Rather, look for companies benefiting from long-term secular growth trends, growing faster than their peers, and with healthy profit margins and balance sheets.
FAQ
Upcoming stock splits FAQ
What do 'reverse' and 'forward' indicate in a stock split?
A reverse stock split means that a company is lowering its outstanding share count by combining several shares into one. A forward split, which is typically what is meant by the term "stock split," involves increasing the share count by effectively dividing each existing share into several shares.
Is it good if my stock splits?
Not necessarily. Sometimes, market interest in a stock increases when a stock split is announced. However, any stock price gains are temporary if the business's financial results don't increase to support the stock price speculation.
Do stocks rise after a split?
Sometimes. Due to increased retail investor interest in a smaller per-share price, often driven by the misconception that a stock split makes a company "cheaper," a stock may go up after a split. But any gains tend to be temporary unless the business generates higher corresponding financial results.
How do you know when a stock is going to split?
There's no way to tell for sure whether a company's management team and board of directors will announce a stock split. However, strong business performance and a track record of stock splits can increase the likelihood of an upcoming announcement of a stock split.
What does it mean when a stock splits?
A stock split does not change the fundamental value of the business. Think of it like slicing a pizza into smaller slices: The overall pizza remains the same size, but more slices are available.
