BKNG - Stock Split Watch: 3 Growth Stocks That Could Be Next
2024-06-07 10:10:00 ET
Stock splits are back in style. Over the past few months, both fast-casual chain Chipotle and chip giant Nvidia announced plans to split their stocks. There's no knowing for sure if more such announcements are on the horizon -- but shares of some top companies have certainly reached price levels that could warrant such moves. Among them are MercadoLibre (NASDAQ: MELI) , Booking Holdings (NASDAQ: BKNG) , and Regeneron (NASDAQ: REGN) .
MercadoLibre is riding the wave of the bull market. Though the Latin American e-commerce specialist has faced some headwinds in the past few years, its stock has generally outpaced the broader market. As of this writing, MercadoLibre's shares are changing hands for an eye-popping $1,631, so a stock split would be appropriate, especially as there are good reasons to think the company will continue to perform relatively well. Consider MercadoLibre's entire suite of services.
Though it is sometimes called the Amazon of Latin America, its business goes far beyond its e-commerce platform. MercadoLibre has a fintech arm, a logistics business, and an online storefront builder. Its operation boasts several strong competitive advantages, including a powerful network effect benefit and significant switching costs. It is hard to imagine any competitor taking much market share away from MercadoLibre in Latin America.
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Stock Split Watch: 3 Growth Stocks That Could Be Next