No More Stock Splits, Why (ISRG, GOOG, AAPL, CME, PTR, ICE, BIDU)?

October 25, 2007 1:28 PM EDT

Back in the dot-com days, Internet stocks would go up and then split, then go up again and split. It was basically a sign a passage. If your stock went up enough, you would split your stock, make headlines, and then gain more buyers, and a few months later, split again. Investors basically forgot the pie concept, that a split just cuts the same pie into more pieces.

However, it seems like times are changing. Google has never split its stock and is trading at $670. In fact, Google's current CEO Eric Schmidt just announced, yesterday, that Google has no plans to split the stock.
It is almost becoming a status symbol to not split your stock. Perhaps, these companies are trying to follow the iconic Warren Buffett's Berkshire Hathaway's (NYSE: BRK.A) trend of never splitting the stock.

I think other companies admire Google's price and are opting not to split their stock. Just look at how many high flier and high priced stocks we have trading today: Intuitive Surgical (Nasdaq: ISRG) is at $323, Apple (Nasdaq: AAPL) is trading at $183, PetroChina (NYSE: PTR) is at $247, IntercontinentalExchange (NYSE: ICE) is at $170, CME Group (NYSE: CME) is at $664, Baidu (Nasdaq: BIDU) $344.

Today's new status symbol is having a stock price that is higher than the average man's daily wage.

Sign up at EasyStockAlerts for free to see your stock news before it breaks to the rest of the public!

Related Categories

Insiders' Blog
Stock Splits

Stocks Mentioned

Comments

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?