Alphabet, Amazon, Tesla, and Shopify Stock Splits: Which High-Flying Stocks Are Next to Split?

Key Points:

• With shareholder approval, industry titans Alphabet, Amazon, Tesla, and Shopify will be enacting stock splits between early June and mid-July.

• Three more top-performing companies could soon join the stock split bandwagon.

Four high-profile companies splitting their shares could be the impetus that encourages these stocks to follow suit.

There has been no shortage of news events to keep investors busy this year. The coronavirus pandemic, historically high inflation, and the invasion of Ukraine by Russia, are just some of the major market-moving events.

But among the many catalysts captivating Wall Street, stock split-mania has seemingly risen to the top of the list.

A stock split is a way for publicly traded companies to alter their share price and outstanding share count without affecting their market cap or underlying business. It's an aesthetic move that primarily benefits retail investors who may not have access to fractional-share purchases. When high-flying stocks split their shares, they're simply lowering their share price to make it more affordable (on a nominal basis) for retail investors.

Four industry titans have announced stock splits since the beginning of February, four supercharged and widely owned stocks announced their intentions to enact stock splits, with shareholder approval.

• Alphabet ( GOOGL -0.12% )( GOOG -0.15% ), the parent company of leading internet search engine Google and streaming platform YouTube, kicked things off in early February by announcing plans to split its shares 20-for-1. If approved by shareholders, the split will take effect in mid-July.

• Amazon ( AMZN -0.81% ) was up next. On March 9, the e-commerce giant followed in Alphabet's footsteps with a 20-for-1 stock split announcement of its own. Amazon's split will take effect in early June if its shareholders give it the go-ahead.

• Tesla ( TSLA 0.37% ) charged forward next. In late March, the electric vehicle behemoth announced its intent to enact a stock split for the second time since August 2020. Although Tesla didn't unveil the magnitude of its proposed split (the August 2020 split was 5-for-1), it did note that shareholders would vote on its approval during the company's annual shareholder meeting later this year.

• Shopify ( SHOP -3.24% ) became the newest highflier to jump on the stock split bandwagon. This cloud-based e-commerce solutions powerhouse intends to split its stock 10-for-1. If shareholders give Shopify the green light, its split would take effect in late June.

Because stock splits are often enacted by companies that are firing on all cylinders, their announcement tends to evoke positive emotions from investors. It's also left Wall Street and investors wondering what high-flying stocks are next to announce a split after Alphabet, Amazon, Tesla, and Shopify.