2 Reasons to Buy Palo Alto Networks Following Its Stock Split
Stock splits are a lot like cutting a pizza. Suppose you have a freshly baked pizza just out of the oven. Then you cut it into four slices. Aside from that tiny bit of cheese and sauce that ends up on your pizza cutter, you end up with the same amount of pizza as before; it's just divided into slices.
Stock splits work the same way. None of the company's fundamentals (e.g., its revenue, earnings, or cash flow) change -- its shares simply end up in smaller, easier-to-handle pieces.
And that's exactly what's happened to Palo Alto Networks (NASDAQ: PANW). The company completed a three-for-one stock split on Sept. 14. Palo Alto shares -- trading for above $500 before the split -- now trade for under $200.
Source Fool.com
