đ°Netflix & ServiceNow just announced stock splitsâtime to chase or chill?
1. What the Split Really Means
A 1-for-10 (or 1-for-5) simply swaps one $100 bill for ten $10 billsâsame market cap, smaller price tag.
But history shows smaller tags often lure bigger crowds:
Psychology: $800 â $80, retail clicks "BUY" faster.
Options: Lower strike prices â higher liquidity â easier covered-call / cash-secured-put income.
Index math: Price-weighted Dow loves "cheaper" shares; passive flows follow.
Splits donât create valueâthey turn a good companyâs sign into neon.
2. Deal Calendar â Mark Your Watch
Ticker | Split | Announced | Key Dates | Status | Trading Notes |
|---|---|---|---|---|---|
5:1 | 29 Oct 25 | Share-holder vote 5 Dec 25 | Pending | 37-day window = crowded fast money; wait for post-vote pullback. | |
10:1 | 30 Oct 25 | Record 10 Nov, Effective 17 Nov | Board approved | Large-cap split avg +1.8 % in first 5 days, but 54 % gap-fade on Day 1âlet the 15-min gap fill before entry. |
3. Scoreboard â Last 2 Years of Splits (effective â 30 Oct 25)
Semis = Superman
$Lam Research(LRCX)$ +105 %â $Broadcom(AVGO)$ +120 %â $NVIDIA(NVDA)$ +60 %
Consumer / SaaS = Solid
$Wal-Mart(WMT)$ +80 %â $Strategy(MSTR)$ +96 %â $Palo Alto Networks(PANW)$ +10 %
Exception = Warning
$Chipotle Mexican Grill(CMG)$ -52 % (earnings miss + guidance cut)
Take-away: Strong fundamentals + split = rocket fuel; weak core = split is makeup on a pig.
4. Next-In-Line Wish-List (>$500, >$2 B daily vol, no split â„ 5 yr)
Ticker | Price* | Buzz |
|---|---|---|
$666 | Never split; press speculation Q4-25 | |
$920 | Last split 2000; analysts ringing bell | |
$2,361 | LatAm e-commerce, zero-split history | |
$1,075 | EUV monopoly, 2007 last split | |
$3,706 | 1994 finale, $3 k+ headline risk |
*30 Oct close â not a forecast, just the rumor mill.
5. 4-Step Split Playbook
Calendar: â„30 days announcement â expiry = front-runnersâ playground; donât chase the last week.
Liquidity: Avoid names <$1 Bæ„ćvolume â easy for market-makers to whip.
Volatility: Post-split HV >50 % = scalp; HV <25 % = sell puts / covered calls.
Risk Ctrl: Hard stop 2-3 %; split â shieldâMeta 2022 fell 18 % post-split on weak earnings.
Bottom line
A split is the marketâs free liquidity adrenaline. Use it to amplify good stories, not to rescue bad ones.
Set alerts, stick to stops, and make sure youâre buying the dip, not the hype.
Data: Tiger Brokers, public filings as of 30 Oct 2025. Investing involves risk; past performance is not indicative of future results.
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