Ben Kriemann / Getty Images Entertainment via Getty Images
Netflix (NFLX) and ServiceNow (NOW) are getting timely splits, making them interesting as they beckon in the retail investors out there.
Netflix had a bad quarter, and shares tanked. ServiceNow had a good one, but shares aren’t blasting off. Both names are worth looking at this year.
Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.
Shares of Netflix (NASDAQ:NFLX) and ServiceNow (NYSE:NOW) were making big waves last week as it was announced that shares of both companies will, at long last, be splitting. Of course, stock splits are a good thing in that they make shares of a company, typically with a high share price (sometimes over four figures), far more accessible to retail investors who wouldn’t go down the route of buying “partial shares” in a company.
Undoubtedly, you really can’t blame new, smaller retail investors for forgoing the names with high share prices, even if one can technically afford to buy a single share or two. Personally, I think it’s a matter of convenience for the retail crowd, and such splits, I think, are a move that’s retail-friendly and could draw further inflows into a stock.
In any case, stock splits aren’t exactly a value creator, and if you’re looking to punch your ticket to shares at a good price, a split announcement might actually work against you, given the positive reaction that tends to follow despite no actual value being created by the act of a split! Personally, I find splits as perfectly fine, but I wouldn’t want to get caught chasing a split-related news event, especially when it comes to a stock that’s gaining for no reason other than news of a split.
Now, in prior pieces, I made a pretty bold call, predicting that Netflix and ServiceNow were top “stock-split stock” candidates to look at closely going into the end of the year. Their share prices were getting swollen, and their…
..
