Stocks

Stock Split Speculation Surrounds High-Flying ADBE and COST

Published August 30, 2024

The stock market often buzzes with speculation about which companies might be next to announce a stock split, and lately, two particular stocks have been at the center of these discussions. Given their towering increases in value since their initial public offerings (IPOs), ADBE and COST stand out as prime candidates for potential stock splits in the near term.

Unprecedented Growth of ADBE

Adobe Inc., known by its stock symbol ADBE, is a giant in the software industry, having produced a suite of products that have become essential tools for content creators worldwide. Its impressive portfolio includes the famed Photoshop and Illustrator software, as well as the widely-used Acrobat Reader and PDF format. The company’s stock has experienced a meteoric rise, achieving a staggering 153,000% growth since its IPO. As Adobe continues to dominate in digital marketing and content creation software, the idea of a stock split seems logical to maintain the stock's accessibility to investors.

Retail Titan COST Shows No Signs of Slowing

Costco Wholesale Corporation, trading as COST, is another behemoth that's made a significant imprint on the retail landscape. Operating as a membership-only retail powerhouse, Costco has established itself as the ultimate destination for items ranging from prime beef to organic foods and fine wine. Climbing an astonishing 287,000% since its public debut, COST mirrors the kind of robust performance that typically precedes a stock split announcement, ostensibly to make share purchases more manageable for a broader range of investors.

With stock-split mania gripping Wall Street, the momentum these two companies carry could very well land them in the elite club of businesses that have opted to make their shares more affordable through splitting. Investors and analysts alike will be watching closely as September approaches, eager to see if ADBE and COST will indeed confirm the speculation and announce a move that historically has been celebrated by the market.

Stock-Split, Investment, Growth