Stocks

Adobe and Costco: High-Flying Stocks Eyed for Potential Splits

Published August 29, 2024

The trend of stock splits is once again becoming a focal point for investors on Wall Street. Two particularly impressive companies, Adobe Inc. ADBE and Costco Wholesale Corporation COST, have seen staggering success since their initial public offerings (IPOs). With increases of 153,000% and 287,000%, respectively, they stand as strong contenders for the next announcement of a stock split come September.

The Case for ADBE Stock Split

Adobe Inc. ADBE, an influential player in the software industry, is established within the technology sector as a giant in content creation and publication. Headquartered in San Jose, Adobe's broad portfolio of software caters to a myriad of digital content production needs, including the iconic Photoshop and Adobe Illustrator, as well as the universally utilized Adobe Acrobat Reader and PDF formats. As ADBE looks ahead, a logical next step to sustain its growth trajectory may be to make its shares more accessible through a stock split, thus attracting a wider base of investors inspired by its multi-million user reach and expansive product suite.

Why COST May Consider a Stock Split

On the other end of the spectrum, Costco Wholesale COST, boasts immense retail dominance as a global leader. Operating as a membership-only warehouse club, it ranks as the fifth-largest retailer internationally. With an impressive catalog leading sales in categories such as organic foods, prime beef, and wine, COST's financial success renders it another potential candidate for a stock split. Such a corporate action could democratize ownership of COST shares, making them a more attractive purchase for investors who are keen on participating in the company's continuous expansion and dominance in the retail landscape.

investment, stocksplit, growth