Stock splits do not change the value of stocks!!
Hence the quotation marks. But the new price does mean more retail investors will pile in.
I’ve only experienced stock going down after a split.
Stock splits do not change the value of stocks!!
You don’t have to yell. LOL! I realize that. However, I only have so much in my day-trading bank stash and I’m not going to use it to buy only a few shares of a thousand dollar stock. It’s no fun just to watch one stock!
At $100 I can buy enough shares to watch it and have fun.
Do you understand why stocks split?
Yup!
Nonetheless, this is a really good 10-Q. You just don’t generally get that kind of YoY from a large/mega-cap.
That said - a 10:1 rather than 5:1 does give me a bit of pause.
Don’t get me wrong; as a shareholder, I’ve got nothing but kisses for Jensen Huang... however, I get leery of investments that move out of their comfort zone.
Wish I were a genius, but I’m not - I jumped into NVDA a fair bit back (2019/2020). I’m a fairly classic Buffett-style investor: Buy and hold, find equities in a growing space who are best-in-class, etc. I bought into NVDA because the chip space - and particularly, NVDA’s old bailiwick of GFX - were lapping competitors and the space was growing. I bought in further when they got a bump from alt-use of chips for crypto mining - and liked that they saw it as nothing more than a happy blip, but not part of their longterm strategy. I didn’t expect the AI revolution nor NVDA’s leadership in it.
By splitting 10:1 (rather than a more conservative 5:1 or whatever), they’re looking for liquidity... and that means it’s time to start looking elements *beyond* their pure market space and market space leadership.
It can be done - Apple transitioned from a future visionary to an Operations expert to maximize efficiency to, well, what they are now: price support via a pile of cash (read: buybacks) + a relatively safe, albeit no longer growing or exciting revenue stream.... Call it the IBM track.
Feels like a crossroads to me for NVDA - and to be honest? I’m not entirely sure what I think about it going forward!