Stock Split Watch: Is Chipotle Next?
Investors love stock splits. it doesn't actually make the company worth more -- you don't have more pizza if you cut those eight slices into 16 -- but it does buoy sentiment. And at least short term, the shares of companies that announce them tend to jump. The implication is that any board of directors authorizing a split knows the company is strong and the future is bright. It can also serve a real purpose for compensating employees.
Recently, two tech titans that many thought might never split their stock said they would do just that. In early March, Amazon announced a 20-for-1 stock split. It followed Google's parent Alphabet doing the same a month earlier. If you're wondering about the next candidate for a big announcement, Chipotle Mexican Grill (NYSE: CMG) checks all of the boxes. These charts show why.
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Source Fool.com
