AVGO - Broadcom Just Split Its Stock. History Says This Is What the Stock Will Do Next.
2024-07-17 05:25:00 ET
In recent months, stock splits have stirred up a lot of excitement in an already effervescent bull market. Companies in a wide variety of industries, from retail to technology, have launched these splits to bring down the prices of their shares after a long period of gains. Investors generally applaud stock splits because a lower per-share price makes it easier for a wider range of buyers to get in on the investment opportunity.
Technology giant Broadcom (NASDAQ: AVGO) is the latest to join the list of exciting stock-split players such as Nvidia and Chipotle Mexican Grill . The semiconductor and networking company completed its 10-for-1 split on July 12, and the shares began trading on a split-adjusted basis on July 15. Today, each share trades for about $170, versus $1,600 just a few weeks ago.
Broadcom stock, even at its high per-share price tag, climbed more than 40% in the first half of the year, adding to a triple-digit three-year gain. Now the question is, at its new lower price, what will the stock do next? Let's look to history for some clues.
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Broadcom Just Split Its Stock. History Says This Is What the Stock Will Do Next.