Two Stocks That Could Split

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Two Stocks That Could Split

Two Stocks That Could Split In 2025

AI has played a key role in uplifting the SP 500, Dow Jones, and Nasdaq Composite. All of these US indexes have reached new all-time highs, which further cements the role of AI.

Looking ahead, there are two key stocks that have a high probability of going through a stock split in 2025. The stock split is a tool used by companies to lower their share price by increasing the outstanding share count. However, this doesn't affect the company's operating performance or market cap.

Meta Stocks To Go Through Split

The first stock that could go through the stock split is Meta Platforms (META), which doesn't need any introduction. Meta is part of the Magnificent 7 that has never gone through a stock split. However, the share price of META crossed $600, which is quite high.

The second stock is Costco Wholesale (COST), which is also at a high risk of going through a stock split in 2025. Ever since Costco became a public company, it has gone through 3 forward splits, with the last one happening in 2000.

The share price of Costco Wholesale (COST) reached a high of $930, which means the chances of a stock split are now higher than ever.

One factor that can make Costco (COST) a great choice is its sheer business size. The company has deep pockets, which allows it to buy products in bulk.

This bulk buying allows Costco to offer products at a lower price, which means we can expect higher revenue in 2025. In addition, Costco's operating model is membership-driven, which allows it to attract more customers.

Members can pay anywhere from $65 - $130 for the membership card. Even this contributes to the company's revenue will likely increase in 2025.

In general, a stock split improves the investor's sentiment and also leads to increased volatility. So, we can expect more upside in the META and COST stocks in the year 2025.

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