Is a Microsoft Stock Split Coming After 23 Years?
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Will Microsoft Follow Peers with a Stock Split?
Microsoft’s hefty share price has sparked talk of a split, but history and fundamentals say wait.
Microsoft’s share price hit $518, troubling some with its size for new investors. Unlike Nvidia, Broadcom, or Netflix, Microsoft hasn’t split its stock in over two decades. Why? The company’s strong earnings growth of 22% and revenue climbing 18% keep investor demand steady, and fractional shares make owning a sliver easier than before. A split would lower the price per share but not the value investors hold. For South African investors watching the rand (USD/ZAR), Microsoft’s moves matter less directly, but any shift in US tech sentiment can ripple through global tech stocks, including Prosus on the JSE which holds a significant Microsoft-related portfolio. Still, Microsoft’s culture and stable leadership tend toward patience. A split could come, but it’s not urgent now. this is just our opinion and not financial advice
Watch Microsoft closely but don’t jump in expecting a split to boost price accessibility. Stay selective in South African tech exposure, favoring companies like Prosus for indirect benefits. USD/ZAR remains the key forex monitor for cost-of-entry changes.
- MSFT
- Prosus
- USD/ZAR
- Microsoft unexpectedly announces a split, lifting short-term momentum
- global tech sector volatility affects Prosus and USD/ZAR unpredictably
6/10
Microsoft's stock price has reached $518, near its record high, but the company hasn't announced a stock split in 23 years despite its share price being significantly higher than historical split thresholds. While peers like Nvidia, Broadcom, and Netflix recently announced splits at much higher price points, analyst Daniel Sparks doubts Microsoft will split soon, noting that fractional shares and the company's strong fundamentals (22% earnings growth) make a split less urgent.
Our take is based on reporting first published by The Motley Fool.
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