5 strong reasons Amazon stock is going to split within 12 months

The recent stock splits of Apple and Tesla were all the rage among my students in The Black Business School.I noticed immediately that these stocks were gaining more interest from the public, even from investors who’d never bought a share of stock in their life.

As a college professor who’s been teaching finance for the past 27 years, I’ve run across numerous theories regarding why companies choose to split their stock.The most interesting thing about a stock split is that IN THEORY, it is not supposed to have any impact on the true value of the underlying company.

But as you might have noticed, the truth doesn’t matter as much as our imaginations. If people THINK an asset has value, then it’s price is usually going to increase. This form of populist investing is leading us to question many of the models I studied in graduate school and to come up with new ways of thinking that are a better fit for a 21st century investing reality.

Upon splitting, both Apple and Tesla have shot up like twin rockets, creating Christmas in August for anyone lucky (or smart) enough to have purchased these stocks in advance. The question everyone is asking now is, “Who’s next?” What companies are likely going to take the stock split plunge and draw the positive investor attention that tends to follow?

One of the most obvious companies on the stock split radar is Amazon. A solid company with a strong management team, Amazon is one of the most efficient and profitable companies in the world.

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