Stock Splits Matter

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 6 June 2022

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

Amazon splits its stock 20-for-1 and while the pizza didn't get any bigger, there are short-term benefits to the split. (0:25) Jason Moser discusses:
- Research from Bank of America showing the 12-month outperformance of companies splitting their stocks
- Alphabet splitting their stock in July
- Under Armour getting booted from the S&P 500 while Keurig Dr. Pepper (among others) replaces it
- Howard Schultz declaring Starbucks' next CEO will be hired from outside the company

(15:55) Matt Frankel joins Jason to discuss how you can find out what's inside and ETF and provide ideas for any investor who wants to keep it simple.

Stocks discussed: AMZN, GOOG, GOOGL, UA, UAA, KDP, VICI, SBUX, CMG, VOO, VYM, VNQ

Host: Chris Hill
Guests: Jason Moser, Matt Frankel
Producer: Ricky Mulvey
Engineer: Dan Boyd

Transcript

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0:00.0	Amazon splits, underarmor gets the boot and we go inside an ETF.
0:10.2	Motley full money starts now.
0:12.0	I'm Chris Hillen and I'm joined by Motley Full Senior and Lest Jason Moser.
0:25.4	Happy Amazon split day.
0:28.1	I was wondering, man, I feel like I went back to my original cost basis and I thought, wait
0:34.4	a minute, what?
0:36.0	But no, yeah, it's one of a few splits coming up, right?
0:39.8	I think we've got Alphabet coming up soon as well.
0:42.2	We do.
0:43.2	Let's stick with this.
0:44.9	For those who missed it, Amazon today is the day before the market opened.
0:48.8	Amazon shares split 20 for one.
0:51.8	So for every one shareholder's own, they now have 20.
0:55.8	Like 120 at the previous price, which of course led to some funny postings on social media
1:03.6	of the stock chart down 95 percent.
1:10.3	That sort of thing.
1:11.6	But I want to get to what's happening with the S&P 500 because there's some rebalancing
1:17.3	going on.
1:18.3	We'll get to that in a second.
1:19.3	But in terms of the stock splits, this is something that comes up now and again.
1:25.5	And we always say the same thing, which is like, hey, the pizza is the same size, whether
1:30.0	you cut it into four slices or in eight slices.
	...

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