Stock-Split Watch: Is Palantir Next?
The artificial intelligence (AI) data analytics company Palantir (NASDAQ: PLTR) has been the stock to own in recent years. As of October 1, it's up nearly 140% this year and more than 1,850% over the past five years, making it one of the largest beneficiaries of the artificial intelligence boom.
Companies can use stock splits to artificially manipulate their share prices and outstanding share counts without changing a company's market cap, but they often do so for specific reasons and not at random. After Palantir's big move in recent years, is a stock split on the horizon?
Management teams may want to consider changing a company's outstanding share count or share price for several reasons. If a stock has performed well and gone on a big run, management may want to lower its share price to make the company's stock feel more attainable for all investors, from the "smart money" on Wall Street to the average retail investor. Traditional stock splits can also increase the share count, which can boost liquidity.
Source Fool.com
