AVGO - Broadcom's Stock Split Happens Today. Here's What it Means for You.
2024-07-12 04:15:00 ET
At today's stock market close, Broadcom (NASDAQ: AVGO) will make a move to slash its high-flying share price. The technology giant will complete a 10-for-1 stock split, lowering the price of its stock from more than $1,700 to about $170. The stock will start trading at the new price as of the market open on Monday.
Broadcom shares have soared nearly 100% in the past year as demand from artificial intelligence (AI) customers picked up -- in the recent quarter alone AI revenue surged 280% to $3.1 billion. Investors also have applauded Broadcom's acquisition of cloud software company VMware, a key driver of growth in the quarter.
Broadcom's operation today doesn't erase the stock's fantastic past performance -- it just lowers the price of each individual share by issuing more shares to current holders. And this purely mechanical operation doesn't change anything fundamental about the company like valuation or market value. But it isn't exactly a non-event, either. Here's what the Broadcom operation means for the stock and for you.
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Broadcom's Stock Split Happens Today. Here's What it Means for You.