Apple (AAPL)’s unusual 7-for-1 split, its first split in nine years, has investors thinking hard.
In an interview with FBN’s Maria Bartiromo ahead of Apple’s blockbuster second quarter fiscal 2014 results, JMP Securities analyst Alex Guana said, “Had Apple been intending to do a stock split, they had ample opportunity and should have done it a long time ago.”
But despite the tech giant’s most aggressive stock split in its history, investors who see a stock split as having more to do with perception than accounting, seem to like the excitement it generates with some even expecting more splits in the coming weeks from fundamentally strong companies. One such company is Priceline.com (PCLN).
Following Google (GOOGL), Mastercard (MA) and Apple splitting their stocks – what are the chances the online travel company with its stock trading above $1,200 p/sh will follow the trend?
Well, according to Keith Bliss, director of sales and marketing at brokerage Cuttone and Co, “It’s not out of the realm of possibility”, as lower prices have greater curb appeal to small investors.
Other market experts share Bliss’s viewpoint with some even suggesting the company may start to be pressured from its stockholders for a possible stock split.
That said, there is nothing out there in terms of rumors or reports to suggest a split is coming for Priceline. But since the company reports its Q1’14 earnings on May 8 before the opening bell, and considering PCLN is the most expensive single stock on the S&P 500, a stock split remains a possibility.
Priceline shares are down more than 6 points to $1,211 in premarket Friday trading. As of Thursday’s close, PCLN was up 78% y/y.