This article discusses the importance of stock splits as a catalyst for the stock market in 2024, alongside the hype surrounding artificial intelligence companies. It highlights the different types of stock splits, with a focus on forward-stock splits that are usually undertaken by companies outperforming their competition.
The article mentions the stock splits of Nvidia and Broadcom, two AI leaders that have seen significant gains in their share prices. It also introduces two new companies set to take center stage with their stock splits: Sirius XM Holdings and Cintas.
Sirius XM is set to complete a reverse-stock split, which is aimed at increasing its share price to avoid delisting. Despite this, the company still has competitive advantages, such as subscription pricing power and a subscription-based revenue model.
Cintas, on the other hand, is conducting a forward-stock split, marking the sixth time the company has split its stock since its IPO. The company benefits from the non-linear nature of the economic cycle and its customer diversity.
Overall, the article emphasizes the importance of stock splits as a tool for companies to alter their share price and outstanding share count, which can attract investors and drive stock performance.