Could Microsoft Be the Next Company to Announce a Stock Split?

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Microsoft (NASDAQ: MSFT) has seen its stock price surge to over $400 per share, primarily due to growth in its cloud and artificial intelligence sectors. The company has not executed a stock split since 2003, despite a previous history of nine splits between the late 1980s and early 2000s. Analysts suggest that a stock split could enhance liquidity and make shares more accessible to investors.

In its latest fiscal report for Q4 2024, Microsoft surpassed Wall Street expectations, fueled by momentum in its cloud and gaming businesses. The stock currently trades at 32 times its estimated 2025 earnings, with projected earnings growth of 16% annually over the next three to five years.

Historically, Microsoft’s stock appreciated 1,400% since launching its Azure cloud platform in 2010. Analysts are divided on whether to invest, emphasizing that stock splits do not change the fundamental valuation of the company.

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