Analyzing Potential Stock Splits: Will MSFT and NOW Follow the Trend in 2024?

Following the notable stock splits executed by NVIDIA, Broadcom, and Super Micro, market analysts are turning their focus to the sector of artificial intelligence (AI) stocks, where they predict that upcoming splits could potentially be seen in the year 2024. Among the frontrunners for this corporate action are two prominent AI stocks, which may be taking a page out of their predecessor's playbook to deliver added shareholder value through stock splits.

The Case for MSFT

Microsoft Corporation MSFT is a household name in the American technology landscape, known for its range of products that include the ubiquitous Microsoft Windows operating systems, the Microsoft Office suite, and its foray into the hardware market with the Xbox video game consoles, as well as the Microsoft Surface PCs. As of 2020, it stood proudly in the Fortune 500 rankings and bears the distinction of being the world's largest software maker by revenue as of 2016. Given its significant role within the Big Five of the U.S. information technology industry, it's no wonder that MSFT is considered as a potential candidate for a stock split in the near future.

NOW Poised for a Split?

ServiceNow NOW, although not as well-known as its peer MSFT, is a major player in its own right. Operating from Santa Clara, California, this American software company empowers other enterprises with digital workflow management through its innovative cloud computing platform. As organizations continue to digitize and streamline their operations, NOW's relevance and financial performance suggest that it could very well follow through with a stock split, aiming to make its shares more accessible to a broader base of investors.

Companies often opt for stock splits to lower the trading price of their stocks, making them more attractive and affordable for individual investors, which in turn can bolster market liquidity. With their standing in the field of AI and technology, both MSFT and NOW are under scrutiny for such strategic moves as we approach 2024.

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