Top Stock Split Performers of 2024: What’s Driving Their Success?
Everyone understands that cutting a pizza into six or eight slices doesn’t increase the amount of food compared to cutting it into four slices. In a similar way, stock splits don’t change the value of stocks but can attract new investors, potentially boosting share prices. This year, we have observed this trend with some notable stock splits. Here are three of the top-performing stocks after splits in 2024.
1. AGBA Group Holding Ltd.
Hong Kong-based AGBA Group Holding Ltd. (NASDAQ: AGBA) executed one of the year’s most unique stock splits on October 2, 2024, with a 122-for-63 split occurring earlier this month. Shareholders approved this move on September 19, 2024, alongside a potential reverse stock split ranging from 1-for-1.5 to 1-for-20.
AGBA’s stock price has soared over 340%, largely due to its upcoming merger with Triller, a private company that provides an AI-powered platform for online content. Notable clients like Meta Platforms, PepsiCo, and The Walt Disney Company utilize Triller’s services to enhance user engagement.
However, the merger is not yet finalized and must pass regulatory approval. If successful, AGBA intends to rebrand as Triller Group.
2. MicroStrategy
MicroStrategy (NASDAQ: MSTR), a leader in Bitcoin development, executed a 10-for-1 stock split on August 7, 2024. Following the split announcement on July 11, stock prices surged, continuing their rise after trading commenced on a split-adjusted basis on August 8.
Most of MicroStrategy’s remarkable gain of over 190% in 2024 occurred prior to the split, linked to a rise in Bitcoin’s value. In February, the company revealed owning 190,000 Bitcoins, justifying the price surge at that time.
Despite the stock’s success, the company’s actual business numbers have not been as positive. In the second quarter of 2024, revenue dropped 7.4% year-over-year to $111.4 million, and the company reported a net loss of $102.6 million compared to a profit of $22.2 million in the same period the previous year.
3. Nvidia
Nvidia (NASDAQ: NVDA) had one of the most awaited stock splits of the year, completing a 10-for-1 split on June 7. It has been one of the hottest stocks this year.
Despite the excitement around its split, Nvidia ranks third among top stock-split performers, with shares rising more than 170% this year. Most of the increase occurred in the first half of 2024; however, share prices fluctuated in the latter half due to concerns regarding delays in the shipment of new chips based on the Blackwell architecture.
Looking Ahead: Which Stock Will Shine?
Among the top stock-split names in 2024, Nvidia seems poised for continued success over the next year. The anticipated demand for new Blackwell chips is significant, as CEO Jensen Huang recently stated that demand is “insane.” The company’s plan to unveil new technology annually may give this stock the momentum needed to continue climbing.
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Randi Zuckerberg, a former Facebook market development director and sister to Meta Platforms CEO Mark Zuckerberg, is on The Motley Fool’s board. Keith Speights owns shares in Meta Platforms, PepsiCo, and Walt Disney. The Motley Fool has investments in and recommends Meta Platforms, Nvidia, and Walt Disney. Full disclosure policy is available.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
