Investors have some advice for Priceline management: split your stock.
— Anti (@KiddoTrader) Jun. 9 at 02:10 PM
The travel deals company, which trades at $1,231.96, was among the most discussed tickers on StockTwits.com Monday following Apple’s 7-to-1 stock split. Apple shares rose after it split its stock and investors argued that Priceline shares, which declined Monday, would benefit from some split psychology.
$PCLN Maybe time for a split announcement and increase buyback?!!
— Navi Avatar (@NaviAvatar) May. 9 at 12:25 PM
Bulls on Stocktwits argued that splitting a stock increases attractiveness among retail investors who don’t want to—or can’t afford to—spend thousands to purchase less than ten shares of a company. And they said that the psychological impact of seeing “affordable” shares would also encourage more investment. Right now, some investors might see a share price in the thousands and assume Priceline is an insanely valued momentum stock—even though the assumption is not logical since price alone doesn’t determine a company’s market cap.
$PCLN Should have been split @ 1300 #fail
— Mauro (@Evid3nce) May. 9 at 12:19 PM
$PCLN the only thing that could move this up is a Stock Split announcement coupled with a share repurchase or dividend
— Poligraph Poligrafovich (@PP_Sharikov) May. 7 at 11:14 PM