Here's Why Costco Says It Has No Plans to Split Its Stock at $1,000 Per Share

Core Insights - 2024 has seen a significant number of stock splits among leading companies, although some high-priced stocks, like Berkshire Hathaway and Costco, have opted out of this trend [1][2][3] Stock Splits Overview - A stock split involves lowering the price per share while increasing the share count, which does not affect the overall company value or its fundamental performance [4] - Traditionally, companies split their stocks to attract small-dollar investors who may be deterred by high share prices, thus potentially expanding the investor pool and increasing liquidity [5][6] AI Tech Stocks and Splits - The rise of AI technology has led several tech stocks, including Nvidia, to split their shares, with Nvidia executing a 4-for-1 split in 2021 and a 10-for-1 split recently [7][8] Costco's Position on Splits - Costco's share price has risen nearly 50% this year, reaching $1,000, yet the company has no immediate plans for a stock split, as stated by CFO Gary Millerchip [9][10] - The availability of fractional share buying has diminished the necessity for stock splits, allowing investors to purchase portions of shares rather than whole ones [11][12] Future Considerations for Costco - While Costco has previously split its stock, the management acknowledges that the economic rationale for splits has changed due to fractional share buying [12] - Despite the current stance, Costco's management may reconsider a split in the future, but they prefer to maintain their independent approach, which has historically led to strong performance [14]