priceline (PCLN) is First to Break $1,000 Level in S&P 500; Should It Split?
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Dear priceline.com, Inc. (Nasdaq: PCLN),
It's been a great ride. You offering deal after deal to unsuspecting customers from all over the globe, saving money like it didn't even matter. But, it did matter, to each and every one of those customers. Customers who used the extra cash to spontaneously plan a weekend bed-and-breakfast get away;
To relax on some exotic beach half-way around the globe;
To make it to a loved one's bedside as they coped with a life-threatening illness.
Now it's time for a split...of your stock, that is.
You become the first S&P 500-listed stock to break above the $1,000 level and with a market cap exceeding $50 billion, you are certainly a force to be reckoned with.
Imagine how many investors think the stock can go higher, but are put off by the high entry price. At $100 or $200, investors would feel better owning "a few" shares rather than just one share of stock. Something about volume when it comes to stocks that is appealing to more people. "I own 10 shares of this," or "I just sold 25 shares of that."
Or, maybe not. The same could be said for your stock at $600, $700, or $800. Do you really need to split to draw in more investors? Google (Nasdaq: GOOG) is still doing well despite trading at $900. Apple (Nasdaq: AAPL) was ripping right through $600 and $650 until iPhone 5 supply issued spooked the Street.
If you're good at what you do, then folks will flock to your shares anyway. Just like they have been doing.
Shares of priceline are down modestly Thursday, but up over 60 percent in 2013.
It's been a great ride. You offering deal after deal to unsuspecting customers from all over the globe, saving money like it didn't even matter. But, it did matter, to each and every one of those customers. Customers who used the extra cash to spontaneously plan a weekend bed-and-breakfast get away;
To relax on some exotic beach half-way around the globe;
To make it to a loved one's bedside as they coped with a life-threatening illness.
Now it's time for a split...of your stock, that is.
You become the first S&P 500-listed stock to break above the $1,000 level and with a market cap exceeding $50 billion, you are certainly a force to be reckoned with.
Imagine how many investors think the stock can go higher, but are put off by the high entry price. At $100 or $200, investors would feel better owning "a few" shares rather than just one share of stock. Something about volume when it comes to stocks that is appealing to more people. "I own 10 shares of this," or "I just sold 25 shares of that."
Or, maybe not. The same could be said for your stock at $600, $700, or $800. Do you really need to split to draw in more investors? Google (Nasdaq: GOOG) is still doing well despite trading at $900. Apple (Nasdaq: AAPL) was ripping right through $600 and $650 until iPhone 5 supply issued spooked the Street.
If you're good at what you do, then folks will flock to your shares anyway. Just like they have been doing.
Shares of priceline are down modestly Thursday, but up over 60 percent in 2013.
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