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Microsoft (NASDAQ: MSFT) is currently priced at around $460 per share and may be on the verge of a stock split due to its status as one of the 30 components of the Dow Jones Industrial Average. Unlike other major indexes, the Dow is price-weighted, meaning that stocks with higher prices, such as Microsoft, exert greater influence on the index.
As one of the highest-priced stocks in the Dow, Microsoft is under pressure to consider a split, especially given comparisons to other firms like UnitedHealth Group, which sells for approximately $505 per share. Historical precedents, such as Apple’s 4-for-1 stock split at a similar price point in August 2020, indicate that a split could be imminent.
Under CEO Satya Nadella, Microsoft’s market capitalization has surpassed $3.4 trillion, largely driven by its growth in cloud services and artificial intelligence. This continued growth trajectory further fuels speculation that a stock split could be announced soon as a strategic move to maintain its Dow component status.
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