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Investments: 3 of the 7 “magnificent” companies seek to divide their shares to be more accessible to retailers

Investments: 3 of the 7 “magnificent” companies seek to divide their shares to be more accessible to retailers

Four of the 7 magnificent ones are already purchased for less than US$200 per title.

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amazon and Alphabet They are more accessible now than a few years ago. That happens because the companies have divided their Actions (known as split) on several occasions. Four of Wall Street’s “Magnificent Seven” The title is now purchased for less than $200, but there are threes Nvidia, Microsoft and Meta who are working on making their stocks more accessible to retailers.

The Nvidia case

Nvidia is now approaching $900 and surpassed the levels at which the company carried out its last split in July 2021. The day before executing it, so that each share was divided into four, the price of each one was around $750. With this exchange, these new titles began to be traded at less than $190.

Since then, Nvidia shares rise 370% on the stock market thanks to the boost provided by its commitment to artificial intelligence. The feeling that a new split is taking place is growing on Wall Street. “Probably over the next year the shares [de Nvidia] “They could split up and that could attract some small retail stock investors who think it’s out of reach right now,” says Ken Mahoney, president and CEO of Mahoney Asset Management, in words reported by Bloomberg.

The chip multinational has carried out five splits since 2000. In addition to 2021, it opted for this resource in 2007, 2006, 2001 and 2000. The most significant division was the last one, four for one, since on other occasions it was limited to halving those shares.

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Nvidia has been one of the biggest stars in technology

Nvidia has been one of the biggest stars in technology

Microsoft

Microsoft, on the other hand, has not carried out a split for 21 years, after opting to do so nine times since it went public. The last time was in 2003, when its stock was around $48; today it is worth almost ten times more. Artificial intelligence has also catapulted the firm founded by Bill Gates and Paul Allen in the 70s to the point that it has once again surpassed Apple, becoming the largest company in the world with more than 3 billion capitalization.

The company shares are trading at all-time highs, around 425 dollars. And, as with Nvidia, the forecasts are still very optimistic. Seven analysts value them above the psychological barrier of $500. Microsoft is the second firm with the highest price in the entire Dow Jonesonly behind UnitedHealth.

Goal

Meta is the only one of the Magnificent Seven that has never divided its shares. Although the company has not made any reference to this either, this is the first time that the price has approached the psychological barrier of $500. This level was what led Apple to execute its last split, in this case in August 2020.

Source: Ambito

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